Protecting Wealth

Reducing a legacy from IHT - Lisburn & Belfast

My parents had worked incredibly hard to build up a successful electronics business over 20 years, but on the premature death of my Mother; my Father and I decided to sell the business to a large listed public company. Whilst we were reluctant to sell, we didn’t believe it was in the family’s interest to continue to manage the company in light of the loss of my Mother. We choose to take a lump sum and a considerable share holding in the PLC.

This has proven to be a good decision as the share value has continued to increase along with our dividends and share value. My family’s solicitor referred me to LFP as my Father’s Inheritance Tax problem had obviously worsened on sale of the business and we were feeling aggrieved at the thought of the Government potentially taxing our family so heavily on death, especially after countless years of paying larges taxes throughout the life of the company.

Following consultation with LFP, we put in place a number of Inheritance schemes which would protect some of my Father’s capital on death and greatly reduce the potential liability. Sadly my Father died last year, and this was before all the schemes would be exempt from IHT.

However, the successful schemes did save us over £500,000 in inheritance tax, which I know would have greatly pleased my parents, whose main focus in life was providing for their children and grandchildren. This money is now invested in a Cautious Portfolio for the eventual benefit of my children – and hopefully will help them get off to the best possible start in life – I know my parents would be pleased.

For confidentially reasons, some of the information in this case study has been changed.