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Where Taxpayers and Advisers Meet

Search found 24 matches

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by TW1234
Thu Feb 20, 2020 4:26 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Assign Insurance Bond
Replies: 9
Views: 1233

Re: Assign Insurance Bond

"If you want the parents of the child to be trustees and you not to be a trustee then you will need to assign (ie transfer) the bond to them (you will be a so-called settlor) for them to hold as bare trustees for their child." Thanks again. This was my intent and it is that combination of assigning...
by TW1234
Thu Feb 20, 2020 3:32 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Assign Insurance Bond
Replies: 9
Views: 1233

Re: Assign Insurance Bond

Thanks. The lack of a draft seems to relate to my attempt to create an absolute trust that excluded the settlor as a trustee and used only the minor's parents. As you say, this will not be important as the minor will fairly soon reach majority. However, I will be faced with a similar situation for a...
by TW1234
Wed Feb 19, 2020 12:29 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Assign Insurance Bond
Replies: 9
Views: 1233

Re: Assign Insurance Bond

I have attempted to transfer ownership of the bond into the "name of the parent in trust for the name of the grandchild". The Insurance Company have stated that:- 1 They do not have any suitable draft transfer forms to accomplish this. 2 A letter requesting that such action be taken is inadequate. 3...
by TW1234
Wed Nov 13, 2019 3:32 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Assign Insurance Bond
Replies: 9
Views: 1233

Re: Assign Insurance Bond

Thank you for the response.
by TW1234
Sun Nov 10, 2019 12:53 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Assign Insurance Bond
Replies: 9
Views: 1233

Assign Insurance Bond

It is intended to assign an insurance bond, that has a substantial accrued profit, in its entirety to a minor as an outright gift. (A discretionary trust is not required) I believe that by so doing, no chargeable event is triggered, the assignment becomes a PET, at the value at time of assignment an...
by TW1234
Thu Jul 11, 2019 11:48 am
Forum: Income Tax
Topic: With profit Bonds - taxation on surrender
Replies: 1
Views: 5229

Re: With profit Bonds - taxation on surrender

There is more to the calculation, and you need to research "Top Slicing" relief. The HMRC site has guidance. However this is not a fully equitable tax as there can be winners and losers. (As you indicate) This gives some opportunity to avoid the consequences by encashing when a low rate tax payer bu...
by TW1234
Sun Dec 03, 2017 4:14 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Gift without reservation
Replies: 5
Views: 887

Re: Gift without reservation

The source of your funds for the gift is irrelevant. If the funds are raised in joint names, the gift amount can be transferred so that is in one person's sole ownership. (Inter spouse transfers are exempt) The gift should be made from an account that is in the sole name of the person making the gif...
by TW1234
Wed Nov 29, 2017 2:47 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Payments out of income for IHT purposes
Replies: 15
Views: 48296

Re: Payments out of income for IHT purposes

I understand your recognition of some circumstances in which a joint account is apportioned based on contributions, but this would not be the normal situation for a married couple.
You would be in a difficult position to assemble an allocation that covered all the proportioned outgoings.
by TW1234
Tue Nov 28, 2017 10:02 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Payments out of income for IHT purposes
Replies: 15
Views: 48296

Re: Payments out of income for IHT purposes

NB Other readers may wish to consider the benefits of first transferring funds into individual accounts that are used to make gift payments and so clearly identify the donor.
by TW1234
Tue Nov 28, 2017 9:57 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Payments out of income for IHT purposes
Replies: 15
Views: 48296

Re: Payments out of income for IHT purposes

On a simple view, the income was not joint but arose from seperate individuals who then amalgamated it. This should be identifiable from your available accounts. The expenditure would be reasonably apportioned 50/50. This will give unequal amounts available to be classed as surplus income. ( your fa...

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