interest in possession trusts

[Feedback]

2 clients, both with qualifying IIPs valued at more than £2m per client...what is the best way to mitigate IHT?

happy to take this offline and discuss with those who specialise in this area and can provide advice...

[AGoodman]

You have three choices really - none perfect:

1. Invest the trust fund in relievable assets (realistically this probably means AIM or a "fund" managed by the likes of Oxford Capital / Foresight / Octopus - some of the latter may also provide an income).
2. Advance the trust fund to the next generation by an outright appointment/advance or the life tenant releasing in favour of absolute reversionary beneficiaries. An appointment onto fresh trusts would be a chargeable transfer.
3. If there is spouse with a better life expectancy and the trustees have the power - appoint the spouse a reversionary life interest - creating a transitional serial interest. This will only defer the problem and obviously risks the spouse dying first or dying shortly after the current life tenant.

Any of this could be carried out in part rather than over the whole.