CASE STUDY
With the 2024 UK Budget tax reforms, high-net-worth individuals are understandably concerned about potential changes to the Inheritance Tax (IHT) system. These concerns are particularly heightened for those who have made significant potentially exempt transfers (PETs) to their children.
Recently, Henry Dannell assisted a client who had arranged £18.5m in PETs to their children. While these transfers offered potential tax benefits, they also created a potential IHT liability of £7.5m for the children. The client was keen to mitigate this risk and ensure that their children would not be burdened with a substantial tax bill in the event of their untimely passing.
We provided advice to the client and arranged suitable life insurance policies that are correlated with the potential IHT liability faced by the children. These policies are designed to pay out should the client pass away within the 7-year tapered relief period.
Our team of experienced advisers worked closely with the client to identify the most effective approach. We guided them through the financial and medical underwriting processes and helped with placing the policies into appropriate trust structures. This ensured that, in the event of the client’s passing, their children would receive a payout that could be used to settle the IHT liability, avoiding the personal burden of such a cost.
This successful outcome demonstrates Henry Dannell’s commitment to providing innovative and proactive solutions to help high-net-worth clients protect their estates from inheritance tax. If you are a high-net-worth individual seeking assistance or if you support high-net-worth clients, please do not hesitate to contact our specialist team.
This is a case study and not indicative of typical results. Past performance is not necessarily representative of future results. This information is for general purposes only and does not constitute financial advice. Please seek professional advice before making any financial decisions.
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