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Trusts v FICs

15 June 2021 / Sam Hart , Craig Simpson
Issue: 4796 / Categories: Comment & Analysis
51077
Keeping your options open

Key points

  • Clients often prefer a company to a trust as it is a structure with which they are familiar.
  • Trusts are flexible structures – which also makes their creation more complex than FICs.
  • FICs are also flexible with many ways of setting one up – all offer tax planning advantages – and they can be tailored to the client’s needs.
  • Both trusts and FICs have pros and cons when it comes to IHT.
  • A good solution may be to use a blended trust/FIC approach to estate planning.

While trusts have been around since the 16th century the family investment company (FIC) challenger to the throne has also now been around for a few years; certainly long enough for HMRC to have a specialist unit to deal with them.

Introducing the contenders

When we think of all the things Henry VIII brought us – including the most painful way...

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