Inheritance Tax

Knightsbridge Wealth was introduced to Mr Y, a retired Government Minister from the Middle East. The family had a number of offshore investments that they had made over the years. They were looking to buy a residential property in the UK for their use during the year. Whilst they envisaged spending quite some time here, their intention was not to move to the UK full time. With our help, they identified a property to purchase for £2.3m which they intended to pay for with cash from their home country.

The client was concerned about how his assets were structured. He wanted to ensure that his wife and family had access to capital and income should anything
happen to him.

We introduced Mr Y to a tax adviser who recommended that the family assets be structured within an offshore Trust. The Trust structure would allow an independent third party to take control of the day to day administration of Mr Y’s assets as he was beginning to find this an additional strain. The Trust was also able to appoint a discretionary fund manager to invest the assets in line with Mr Y’s wishes. We report to Mr Y on a quarterly basis on the performance of his portfolio.

Most importantly the Trust will ensure that the beneficiaries, Mrs Y and the children, have access to capital and income as Mr Y has instructed and that
the family’s assets are protected from UK Inheritance Tax – saving the family almost £700,000.