As ‘Best Practice Representative’ in the inaugural Law & Justice edition of the Parliamentary Review, Countrywide Tax & Trust Corporation Ltd and its experts embark on presenting next month’s webinar based on Flexible Life Interest Trusts (‘FLITs’).
Next month, our FREE Webinar discusses the use and impact of Flexible Life Interest Trusts (‘FLITs’).
Flexible Life Interest Trusts continue to be widely used and recommended by many in the industry, but are they really best advice for your clients?
Have you considered the disadvantages and the implications for your clients?
So what are the issues?
• The entire estate of the deceased enters the FLIT.
• The whole estate is therefore deemed to be in the estate of the surviving spouse for IHT purposes.
• On first death none of the Residence Nil Rate Band (RNRB) nor Nil Rate Band (NRB) would have been utilised – and could therefore be lost.
What other implications could this have for your clients?
• The value of Business and Agricultural assets directed into the FLIT could lose your client valuable BPR and APR reliefs.
• If the business or qualifying investment is sold after first death, the sale proceeds would aggregate with the estate of the surviving spouse – this could affect the availability of other reliefs.
• There could be nothing left for the remainderman and discretionary beneficiaries – those your client chose to inherit.
• Some FLITs will continue to give an indefeasible right to income, irrespective of events. What are the risks here and have you considered them?
To learn more, register now to reserve a place on our free webinar!
All webinars commence at 10am and finish at 11am.
This article was submitted to be published by Countrywide Tax & Trust Corporation Ltd. as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.
