FOR FINANCIAL ADVISERS ONLY

FOR FINANCIAL ADVISERS ONLY

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The need for tax efficiency

Dave and Suzanne

David and Suzanne are concerned because their joint wealth exceeds the current UK inheritance tax (IHT) nil rate band. On the advice of their financial advisers, they decide to invest £600,000 of their capital into a loan trust. David and Suzanne do not want to be concerned about the day-to-day paperwork, tax forms and documenting of decisions relating to the trust and appoint the Old Mutual International Trust Company as the trustees of the trust. The trustees invest the money into an International Portfolio Bond with Old Mutual International Isle of Man Limited. This has the benefit of capping David and Suzanne’s IHT liability on this investment, with any growth being outside of their estate and not subject to IHT.

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