By the end of 2024 over £8Bn is set to be raised by HMRC from Inheritance Tax which signifies a new record take for the Government. 60% of advisers said that over half their clients over 50 would benefit from Business Relief (“BR”) solutions.
According to the Office for National Statistics, one in two people pass away before their 84th Birthday and by 85+ the statistical chance of surviving past 12 months is one in seven at best. This giving rise to the need of fast IHT planning for those clients who have potentially left it too late, and where more typical IHT planning solutions such as gifting or trust planning may not be as effective. Furthermore, The Great Wealth Transfer will see £5.5 trillion move hands from predominantly baby boomers till 2055. To break that down, this averages £183Bn each year for the next 30 years. Demonstrating the continued need for effective estate planning.
Foresight’s BR products provide the solution for clients to protect their estate from IHT. These products combine a two-year Business Relief investment with group life insurance which sits over the two-year BR qualification window. If the investor passes away within the first two years of investment, the insurance policy will pay 40% net of the investment amount to clear the IHT due on the shares. Please note that tax treatment is subject to change and depends on individual circumstances and insurance cover is only available to investors who meet the eligibility criteria.
You can watch the video on how it works here..
