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19 December 2007
Issue: 4139 / Categories: Forum & Feedback
Correspondence from readers on topical subjects

A simple life?

Stephen Haggett's article 'A simple life?' (see related link above) respecting inheritance tax mitigation planning following the Pre-Budget Report, falls short in an important respect. No consideration is given to the use of chargeable lifetime transfers within the reach of the nil rate band, which, had they been entertained in his examples, would have yielded a much lower inheritance tax liability. Had such gifts been made, then the remaining scope for a nil rate band will trust could be almost entirely eliminated which therefore would be rendered sufficiently uneconomical for it to be best to remove it by a subsequent deed of variation.

It seems better by far that if the case for a nil rate band will trust is later found to exist following the death of the estate owner it should then be instituted by a deed of variation.

Philip Binding,
Binding & Williams Associates Ltd,

Issue: 4139 / Categories: Forum & Feedback
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