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Inheritance Tax Planning

It is common knowledge that most solicitors provide Inheritance Tax advice based on a clients current net worth position. That's all very well if their client dies very soon thereafter but isn't of much use to a property investor he if lives for many more years and his properties continue to double in value every 10 years or so.

A Property Portfolio Review projects how the net value of your estate will increase over the years, based on the your own assumptions in terms of inflation and property growth. The projections are very complex and account for rising costs of insurance, inflation of rental income, lettings costs etc. and can even project net asset values if your intention is to follow The Money Centre's strategy to continue to release equity by restructuring your finances whenever a window of opportunity exists to do so.

To create our Platinum Estate Planning Package we have formed a Joint Venture with Heritage Legal & Financial and Overburys solicitors.

Overburys utilise the Property Portfolio Review to structure their advice with a view to minimising your IHT liabilities based on both todays net asset values as well as projected net asset values. There is no 'one size fits all' as the planning very much depends on factors such as; when the property was purchased, the increase in value from the purchase date, whether you want/need to retain the rental income, whether the property is mortgaged and whether you intend to increase the debt on the properties. Ages of clients will also effect recommendations, for example, an investor in his 30's who is still growing his portfolio will probably want a lot more flexibility than a landlord in his 70's, far more aware of mortality and morbidity, who has repaid all mortgages and whose primary concern is leaving a legacy and protecting his estate from the powers of the crown.

Note that advice from The Money Centre, Heritage and Overburys is completely independent. None of the firms are authorised to sell life insurance so the advice provided will only recommend life insurance if that's the best thing for the client. Also note that Overburys have sought Council's opinion on all schemes they recommend. Overburys are a 300 year old Solicitors practice with a very valuable reputation to protect in the area of Estate Planning. They also carry substantial Professional Indemnity Insurance which provides extra piece of mind, i.e. if their advice to their clients turns out to be wrong, their insurers will make good any losses.

The cost of instructing an accountant/IT contractor to replicate the software we use to produce Property Portfolio Reviews would be circa £15,000.

The cost of advice on IHT to the levels provided by Overburys would normally be in the region of £18,000.

Our Platinum Estate Planning package costs £2,000 + VAT and includes:-

  1. A full Property Portfolio Review
  2. Joint Wills and Lasting Powers of Attorney
  3. Clearly documented advice on IHT from Overburys.

If you take up the advice and further legal work is required in respect of drafting additional documents such as trusts a further £1,500 + VAT is payable.

The reason we are so cost effective is economies of scale, for example, the costs of IT development and Council's opinion is spread across several landlord clients. We specialise in advising landlords and our advice is, therefore, pre-researched and pre-tested. Other solicitors don't have many landlord clients and as a result their clients have to pay them to research the issues, take accountants and barristers advice and even spend hours trying to understand property investment before they can even contemplate giving advice. This all costs money and is not spread across multiple clients. It's also very easy for them to get it wrong as each case is likely to be their first of its kind.

To find out more about Inheritance Tax Planning contact us today.