IHT TAX PLANNING FOR 2008 REVOLUTIONISED
WAY LAUNCHES UNIQUE DUO SCHEME
INHERITANCE TAX PLANNING FOR 2008 REVOLUTIONISED AS WAY LAUNCHES UNIQUE DUO SCHEME
- Major shake up in IHT planning predicted on back of new flexible vehicle
- WAY forecasts a switch away from traditional strategies
- Lifetime flexibility within a discounted gift plan
A RADICAL new approach to inheritance tax (IHT) planning is unveiled by specialist fund manager the WAY Group.
As more and more people are faced with the grim spectre of a 40 per cent IHT hit, The WAY Duo Inheritor Plan, combining worthwhile discounts with lifetime flexibility, is set to shake up industry standards. Believed to be the first of its kind in the UK, the scheme provides a viable alternative to traditional schemes:
"Duo is a unique offering combining features of discounted and flexible IHT schemes," says WAY Group chairman and technical director Paul Wilcox.
"We have carried out pre-launch market research with independent financial advisers and the response has been overwhelmingly positive", he says.
"Our product delivers a discount on the gift into trust, but – in contrast to a discounted gift plan where funds are "locked in" – also offers significant flexibility over 60 per cent of the amount gifted."
"So the donor and family can benefit from a discount to the initial gift and yet have flexible access to the majority of the gifted funds. Given the vagaries of life, Duo gives families unprecedented ongoing financial security with their IHT mitigation," adds Wilcox.
The scheme is linked to a straightforward unit trust/Open Ended Investment Company (OEIC) and not a bond – and thanks to Mr Darling’s initiative, changing capital gains tax to a flat rate of 18 per cent from April 2008 – Duo provides investors with a highly tax efficient IHT planning vehicle.
How the Plan works:
"The discounted gift is created by delivering regular monthly drawings for the first eight years in the form of fixed reversions – these are automatic monthly bank credits generated from the sale of original gifted units/shares totalling 5 per cent annually," adds Wilcox.
"Superior flexibility over traditional discounted gift planning is achieved by flexible, deferrable annual reversions for the first four years combined with fixed monthly "income" drawings over the first eight years – likely to rise over the years to reflect underlying fund performance – paid directly into the donor’s bank account."
"IHT planning is likely to dominate the financial agenda over the coming year, and WAY will be in the vanguard action to protect UK families’ estates from the clutches of the Treasury," predicts Wilcox.
- Ends -
Link: Watch the: WAY Duo Inheritor Plan streaming video
Link: Read/print/download the: WAY Duo Inheritor Plan brochure
Link: Read/print/download the: WAY One Page Guide
Press Release Date: 21st December 2007.
Note: This commentary has been prepared for Financial Intermediary Clients and Professional Associates of WAY Investment Services Ltd and is not intended for and must not be distributed to Private Investors. Thisinformation is supplied to you in confidence and you may not pass it on to any other party without prior written consent. Past performance is not necessarily a guide to future returns and changes in rates of exchangebetween currencies may cause the value of investments to rise or fall. No representation or warranty is given (express or implied) as to the accuracy, completeness or correctness of the information nor the opinions,interpretations and conclusions contained in this commentary. The commentary does not constitute investment advice or a recommendation to purchase or sell any security. Neither the author nor WAY InvestmentServices Ltd accept any liability whatsoever for any loss or damage arising in any way from any use of or reliance placed on the commentary. WAY Investment Services Ltd is an Appointed Representative of WAYFund Managers Ltd which is authorised and regulated by the Financial Services Authority.
Press Release Date: 21st December 2007.