Helping clients use Business Relief alongside an Immediate Post Death Interest Trust to pass on more inheritance

As a financial adviser, we understand that not every client is the same and they can have unique financial needs. That's why today, we wanted to share a client scenario where Business Relief (BR) alongside an Immediate Post-Death Interest (IPDI) can be used to mitigate Inheritance Tax (IHT).

An IPDI trust is an ‘interest in possession’ trust where the beneficiary has a right to the income arising from the trust assets or a right to occupy or enjoy the trust 
assets during their lifetime as a ‘life tenant’.

As a practical example, we have created a visual client scenario featuring a married couple, Bob and Elaine.

Both Bob and Elaine were previously married and have children from their respective first marriages. Bob wishes to guarantee that, upon his passing, Elaine will receive a steady income throughout her lifetime. Simultaneously, he wants the remaining capital from his estate to seamlessly transfer to his children from his first marriage after Elaine's demise.

Download the client scenario

This client scenario provides a possible illustration of how BR and an IPDI trust can work for your clients, and your clients can pass on their estate even in a complicated situation. 

Should you have any questions or require further information on IPDI's or on IHT, our expert team of regional Business Development Managers are ready to help. Get in touch with us at [email protected].

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