"Nothing can be said to be certain in this world, except death and taxes " - or so goes the saying. Well, it took a different meaning when London branch welcomed Peter Legg of IHT Planning Matters in November, reports Co-chairman Abraham Okusanya CFPCM.
This was no dry and boring session. Peter's constant infusion of humor made it thoroughly enjoyable – going by the feed back we have received from over 70 planners who attended.
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One of Peter's seven specific IHT planning ideas involves using a combination of spousal exemption and potentially exempt transfer to make an IOU gift. Take a couple in their early 70s for instance, the husband could consider selling his share of the family home (or any jointly owned asset for that matter) to the wife, who pays him with an IOU, which is payable on her death. The husband then makes a gift of the IOU to their children. If both of them survive 7 years, the gift of the IOU falls outside of their estate and is repayable to the children on the wife's death.
On legislation, Peter suggested it's likely that Potentially Exempt Transfer (PETs), and business and agricultural property reliefs may be less generous in the future than at present.
Peter demonstrated that, while death is still very much a certainty in life, good financial planning makes taxes – specifically inheritance tax – more optional.
