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  • FIRST POST
    • Robin08
    • By Robin08 17th Jul 17, 12:07 PM
    • 1Posts
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    Robin08
    Investment, Trusts and Inheritance Advice
    • #1
    • 17th Jul 17, 12:07 PM
    Investment, Trusts and Inheritance Advice 17th Jul 17 at 12:07 PM
    Hello All - please forgive me if I am posting in the wrong place - I am not sure where to post as my query seems cross topics.
    My 90 year old mother has a trust in place where I would receive the income from her estate on her death and then the estate would pass to my son on the latter of my or my wife's death. She is now downsizing and will realise circa £1.25m cash to add to her existing £350k portfolio. She has a more than adequate pension and wants my wife and I to receive the income from her portfolio now,
    I have two questions
    1. What options are there for investing the £1.25m to provide an optimum mix of interest income and risk? I am very naiive on this subject, but I assume longer term would be best as the capital will remain untouched at least until being passed on to my son on my death (I am 66).
    2. What are the tax implications on my mother's death? I understand the 7 year inheritance tax rule for gifting, but not sure what the liability is for funds held under trust?
    Thanks
Page 1
    • xylophone
    • By xylophone 17th Jul 17, 12:13 PM
    • 23,682 Posts
    • 13,807 Thanks
    xylophone
    • #2
    • 17th Jul 17, 12:13 PM
    • #2
    • 17th Jul 17, 12:13 PM
    I would suggest that your mother consults the solicitor who drew up the trust deed and an IFA/tax accountant.

    https://societyoflaterlifeadvisers.co.uk/

    This appears to be an interest in possession/life interest trust.

    http://www.boltburdon.co.uk/yourlife/wealth-planning/trusts/interest-possession-trust/

    https://www.gov.uk/trusts-taxes/trusts-and-inheritance-tax
    • badger09
    • By badger09 17th Jul 17, 12:35 PM
    • 5,596 Posts
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    badger09
    • #3
    • 17th Jul 17, 12:35 PM
    • #3
    • 17th Jul 17, 12:35 PM
    Totally agree with xylophone

    This isn't an area for DIY, or asking random strangers on the interweb

    Your mother needs professional investment and tax advice to ensure her wishes are met.
    • dunstonh
    • By dunstonh 17th Jul 17, 12:49 PM
    • 89,943 Posts
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    dunstonh
    • #4
    • 17th Jul 17, 12:49 PM
    • #4
    • 17th Jul 17, 12:49 PM
    What does the adviser to the trustees say when asked those questions?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Linton
    • By Linton 17th Jul 17, 1:28 PM
    • 8,637 Posts
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    Linton
    • #5
    • 17th Jul 17, 1:28 PM
    • #5
    • 17th Jul 17, 1:28 PM
    I agree you should be seeking professional advice.

    One small point - if your mother is giving you the income from her portfolio there should be no IHT implications. Ongoing gifts from income are not liable to IHT provided they arent leading to a decrease in the donors wealth nor in her standard of living.
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