About Dominic
Dominic is 64 and has one son William, who’s 5 years old. Dominic lives with his partner, Diane, who is financially independent, in her own property.
Dominic has a small property investment portfolio of £1,200,000, which gives him enough income to live off. He also has £500,000 in savings, which he uses for extra expenses, such as holidays and maintaining his properties.
Dominic’s goals
Dominic’s aware that there could be a large inheritance tax bill to pay when he dies but doesn’t want to give up access to his money as he’s not sure what the future holds. He wants his son William to inherit his entire estate but is worried that William won’t have the funds to pay the inheritance tax bill.
Choosing a bare Probate Trust
After speaking with his adviser, Dominic chooses our bare Probate Trust. With this trust, the death benefits from the investment bond can be paid without the need to get probate. This means that when Dominic dies, William could have quicker access to the funds. These funds can then be used to pay any inheritance tax on Dominic’s estate.
Quick access to funds to pay inheritance tax
Dominic dies 15 years later and the trustees are able to give William the funds quickly. Because of the Probate Trust, William is able to settle his dad’s inheritance tax bill using the proceeds from the investment bond, rather than having to use his own money.
What are the risks?
The value of your investment can go down as well as up and you may get back less than you invest. The way investments performed in the past is not a guide to how they’ll perform in the future.
Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.
