Why use a Business Property Relief Discretionary Trust?

Business Property Relief (BPR)

By | Business Property Relief | No Comments

What is BPR? A relief applied to business property and can provide up to 100% relief from Inheritance Tax. There are a number of conditions which are required to be met: The business must be a qualifying business, The business must be what is referred to as ‘relevant business property’, and; Ownership conditions must be fulfilled. The business must be a trading business rather than an investment business and therefore must meet the ‘wholly and mainly’ test of trading, meaning that the business must not consist wholly or mainly of the making or holding of investments. In other words; businesses which deal in securities, stocks and shares or in land and buildings such as buy-to-let portfolios will not attract the relief. Property developing itself may attract the relief but the renting out of property is an investment activity therefore making it a mixed business and if the business consists of…

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General Discretionary Trust

By | Trustees, Trusts | No Comments

A General/Standard Discretionary Trust has a wide range of uses from protecting assets from the beneficiaries themselves, or third parties seeking money from the beneficiaries. As the assets are held by the Trust, it is out of direct reach of the beneficiaries and is not considered as part of their estate. However, for the Trust to work in this way, there must be more than one beneficiary of the Trust, otherwise the assets are deemed to be owned by that one beneficiary, making this level of protection ineffective. The General Discretionary Trust is useful for making provisions for a dependant, or any other person(s) who could claim under the Inheritance (Provisions for Family and Dependants) Act 1975, without them directly inheriting. This reduces the risk of a successful claim against the estate. This could, however, leave the Trustees in a difficult position of being pressured by this beneficiary. The Trust…

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Will Storage and Remote Attestation Forms

By | Will Storage | No Comments

A case of a lost Will can be very stressful whilst the testators’ family are already going through a difficult time following their loss, meaning a Will storage option should be offered to the client so the Will is kept in a safe place. WillPack are often asked if we offer Will storage. Unfortunately, we do not however, Will storage is available to you through the National Will Archive. As part of their standard service, the Wills are scanned into their system for easy access at a later date and they check that the Wills have been signed and witnessed correctly. Via you, the consultant, the testator(s) are then sent custody cards which provides a reference and contact details to retrieve the Will when required. Executor cards are also provided for the executors so they know where to find the Will. When WillPack issue engrossed Wills, we provide Remote Attestation…

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