Singing Pig

Sincere thanks, "Dr"!

Regards,
Sian

Sianlloydwebber

The IOU is set up within the Will. No extra documentation is needed. However, as previously mentioned, the Will needs to be set up correctly.

Regards money changing hands. If cash is available then the IOU can certainly be cleared this way. However, usually a legal charge is placed against the property for the IOU. The added benefit is that interest can be charged against the debt, so that the debt builds up until second death. There is income tax payable on this, but it is generally less than the IHT bill would be.

Hope this helps, but let me know if you need any further info.

 Many thanks, Pete. To avoid even the "internal" income tax, can the loan not be interest-free? 

Yes, the loan can be interest free.

Nil Rate Bands are fine for a lot of people - if things are set up right then of course each couple can properly utilise their own NRB so a total of £550,000 of estate escapes IHT - however this use of both bands may not suite circumstances for a whole lot of reasons.... in fact many people don't use their individual bands and substitute other arrangements to facilitate tax free status of their assets during their lifetime which then pass automatically on to their beneficiaries - this is a brilliant way of making sure that when you die you don't just pass the tax problem on to your beneficaries. Think about it; estate worth £750,000, two offspring to inherit, £375,000 each, they each have a home, assets and savings worth £375,000 (a pretty average person's estate today) already themselves - so thanks very much Mum and Dad, you just handed me an extra tax bill for £150,000, great.....our Estate Protection Trust gets around this and ensures that once implemented Mum and Dad enjoy total tax free income from their estate, are safe in the knowledge that they'll not compromise their beneficiaries' tax position for 3 generations ahead and that there is no need to mess about with discretionary trusts and seven years of taper relief before their estate is 100% secure. Alkso Wills can be changed quite easily after death (see Princess Diana's Will for example) whereas Trusts simply cannot - so if there is a black sheep in the family (isn't there always?) then the estate IS secure. Not only that but our solution is based on todays estate value; it doesn't matter how much the assets increase in value thereafter, there is no further cost, whereas most standard solutions used need expensive review every few years to ensure 100% protecion is maintained.
Hope this helps
Rex Ashcroft FPC, Cert.PFS, MIoD
Wealth Protection International Limited
0800 731 7479

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Rex Ashcroft FPC, Cert.PFS

Wealth Creator

Whatever it is you are selling may or may not work. I doubt it but I have insufficient knowledge to determine one way or another. However, I am almost certain it will cost your clients a great deal of money.

And as a Willwriter I can confirm that nothing you have said about Nil Rate Band Discretionary Trusts has any basis in fact.

Dr S

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Dr Strange - we do not SELL - we don't need to as 80% of our business is generated through referral, the remaining 20% is derived from fora such as SP as I'm sure you find yourself.

A polite point if I may, if you don't have the knowledge to ascertain if our strategies work then you should not make inferences regading cost. If cost were such an issue then we would do no business but I can assure you we do an awful lot in the UK, Spain, Portugal, France, Belgium, Scandanvia, The Netherlands and Germany.

Wills certainly have an important role to play in Estate planning but our experience is that they fall far short of a lot of peoples' requirements; we have many Will Writers as introducers of business to us and we work hand in hand with them as well as involving clients' solicitors and accountants in formulating and implementing wealth protection strategies.

Finally I don't know if your mode of address in answer to my posting was an extremely poor joke or a genuine error on your part - I would hope the latter.

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Wealth Creator

You are selling a product. You give name address, freephone No. and web page for contact.
Fair enough.

One of the alternatives to your product is Nil Rate Band Wills.

You promote your own product by saying Nil Rate Band Wills are ineffective for many people. In doing so you give information that I as a Willwriter know to be incorrect.

I have retired from willwriting so I have no ulterior motive in promoting tax saving Wills.

But if people on this forum wish to save IHT I merely wish them to have the relevant facts. Your analysis of tax saving wills, either unintentionally or deliberately, was misleading.

Dr S

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