Singing Pig

OK, ok  :  enough of "high-tech" polemics for a lay person like me! I thought I understood NLB, but pray tell us, Wealth Creator  --  in simple terms  --  what exactly IS your alternative? Exactly how does your scheme work please?

I take your valid point that IHT planning via NLB Will may in effect pass the buck down the generations. Possibly it'll be more true if there would be only child of an only child of an only child......... inheriting huge family wealth. But if someone's wealth is divided between a few beneficiaries/children........ down the generations the NLB scheme may be gratefully appreciated by the future generations (for saving them 40% of their inheritance from tax).

So, what's your scheme's (dynamic) assumptions, please? I look forward to be enlightened!

Regards,

Sian

 

 

Hi there everyone. Just joined and this is my first posting so I hope I can add to the debate about IHT & Will trusts since I was an Independent Financial Advisor for a long time and a co-founder of an Estate Planning company and have experience of Wealth Creation & Preservation, Will Writing, Estate Planning as well as the relevant training & compliance.

No, this isn't meant as an advert although I am currently working on a 'Laymans' guide to Estate Planning and would welcome any questions or suggestions for topics to be included. Please email me direct on pfbusiness@aol.com if you have any comments or suggestions.

Having read the various postings I would make the following comments:

1)Money paid as IHT is wasted and should be viewed as paying a voluntary tax ,

2)IHT is affecting more and more people but can be avoided legally,

3)Writing a Will is not the same as Estate Planning but should form part of the exercise,

4)IHT Planning in a will can be effective to a limited degree but comprehensive Estate Planning established and developed whilst you are alive should always be more effective than arrangements limited to any will,

5)There is no quick fix 'this is the best / only solution' because everyones personal & financial circumstances, aims and ambitions are different and evolving whilst legislation and Inland Revenue practices are changing,

6)Doing something is better than doing nothing but there will always be a cost to solve an IHT problem however it should always be less than the cost of doing nothing - or doing it yourself or on the cheap and getting it wrong,

7) Tax avoidance is legal, Tax evasion isn't, and using the regulations to your advantage is always safer and more effective than trying to be too clever so use advisors who understand what Estate Planning really is and uses the basic principles to your advantage,

8) The most brilliant Will is no good until you die. What happens if you don't die? Your wealth can be at greater risk from not dying than dying! - and this is the crux - Estate planning is about ALL your circumstances and asopirations and ALL the situations that might arise, not just your death.

9)Proper Estate Planning takes time, money, and ongoing monitoring to be effective but most solicitors and Will Writers are not experienced in comprehensive Estate Planning. Unfortunately unless you understand what Estate Planning really is it is difficult to evaluate the quality of the advice, if any, you receive,

10) Circumstances and details often change, fundamental principles rarely do so you don't need to try and understand all the technical detail you just need to know and trust a (wo)man who does. Seek to understand appropriate wealth preservation strategies but don't get bogged down in the technical detail, leave that to your professional advisor(s).

In conclusion: Remember, It is your wealth, your life and your problems so don't let anyone tell you what to do, rather look for advisors who take the time to ask you about your circumstances, your ambitions and your concerns and then help you to consider the options and decide which are best for you. In other words spend your time looking for competent advisors you can trust rather than trying to learn everything yourself.

Hope this helps, but please let me know your thoughts. I'm sure that together we can help each other achieve the Financial Independence, Security and Quality Of Life that we all desire.

Sorry this posting is so long but I get passionate about preserving hard earned wealth. Regards, Paul Friesner.

 Hello Paul!

Welcome to the forum, and we do appreciate your passion about wealth preservation. Very likely all of us are passionate, and possibly a wee bit worried, about it too. And that's why here we try our best to help each other out by honestly comparing notes and exchanging experience/information - but in a PRACTICAL/CONCRETE manner.

I sincerely hope this doesn't put you off from further participation, but I regret to say that what appears to be a perfectly valid first chapter of your forthcoming (text) book in effect goes tangentially off our mundane question in hand. It's rather a fandangle of financial philosophy.

Regards,
Sian

PS : Could you very kindly draw upon your (obviously) vast experience and expertise to shed any new light on NLB Wills specifically please?  (Yes, let's for the moment focus more on "dying" than "not dying".)    

 

Hello Sianlloydwebber

Thanks for the welcome and for reading my 1st posting. I hadn't thought of it as a first chapter however 'fandangled' it seems and realised it wasn't as specific as perhaps some people wold want but the main point I was trying to make is that getting bogged down in detail will never be as successful as finding someone to trust and then developing a strategy that can evolve over time as circumstances and legislation change.

IHT planning is full of pitfalls and whilst experienced I don't claim to be a technical expert, but I know people who are excellent technicians without having the personal skills to help people identify their problems and choose the optimum solution(s). I would never post a definitive reply along the lines of 'you should do this' because there is never enough information in a posting to make an informed recommendation that someone might act upon, possibly to their financial detriment.

For example, I thought Rex's comments were perfectly reasonable and pertinent; Dr Strange's comments would produce more limited benefits than Rex's and were unecessarily antagonistic; James was correct about don't try this at home but I doubt that an off the peg solution by the local solicitor will be suitable for most people and comments that 'loans can be interest free' should come with wealth warnings and caveats.

The best course of action will depend upon your circumstances, the size of your estate and your priorities. I don't want to prolong what people may feel is an inadequate response but I'm with Rex and would suggest that especially if your net personal estate (if unmarried) exceeds the nil rate exemption or if married your joint net estate exceeds 2X the nil rate exemption you need proper Estate Planning not just a will trust.

As regards Dying vs Not Dying, how would you like to risk losing control of all your assets and wealth - without the benefit of a nil rate exemption? But perhaps thats for another day.

I understand your wish to find information and presumably a solution to an IHT problem you have quantified and/or anticipated so your reply won't put me off and I hope you find what you are looking for. Regards, Paul.

fisqol

Yes you are correct, I am being unnecessarily antagonistic.

As you rightly say Mr Ashcroft’s comments were indeed perfectly reasonable and pertinent. Furthermore I now understand that he is actively assisting those such as sianlloydwebber anxious to avoid IHT.

This he does by recommending they invest in Dominican Republic property. Full details are posted by Mr Ashcroft on the Punta Perla Property Announcements forum. Clearly NRB Wills can’t hold a candle to this strategy.

Sianlloydwebber, your problems are over, contact Mr Ashcroft immediately before all the property is sold out.

Dr S

Post Edited (Dr Strange) : 9/27/2005 4:48:27 PM GMT

See update on Punta Perla thread over on Property Annoncements forum.

Dr S

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Dr S et al

I stand by the general comments I made earlier but I am concerned if Rex's solution is just to invest in the Dominican Republic as a way of solving all your IHT problems. I don't want to do anyone a disservice or prolong this thread unecessarily but I will repeat that proper IHT planning is best served by an evolving strategy and there isn't a single 'best' answer.

Buying property abroad could form part of the solution, as could a Nil Rate Band Trust in a will, but I am concerned where different solutions are being promoted as the only solution.

I would suggest that before Sian does anything she spends some time considering what she actually wants to achieve, what risks she is prepared to take and her priorities, after all there are other taxes and residency issues to consider if moving and/or holding assets abroad are seriously being considered.

All the best to everyone, Paul.

 Sorry, fisqol, I'm afraid you're probably missing the main point of my raising the query in this forum! It's obvious that for every individual, a case-by-case specific solution will have to be worked out. But we're here more to consider individual (ie separate) financial instruments/provisions etc than to write out prescriptions for any given individual's (personal) case. Otherwise we'd reply "it depends on personal circumstances" to every query and virtually defeat the purpose of this grand forum.