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Latest News

Protecting your assets

Understand how your hard earned assets could be at risk to various risks such as the divorce and bankruptcy of your beneficiaries. 

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20 May 2015
 

Lasting powers of attorney

Your bank accounts could be frozen in the event of an accident or long term illness. Your family could be left in extreme hardship regardles...

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18 May 2015
 

Creditors and bankruptcy

Understand how you can shelter your assets from your beneficiaries creditors.

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12 May 2015
 


Inheritance tax

Once the Cross Option has been affected then BPR is no longer available on the proceeds, ie from any life assurance. The beneficiaries’ assets assessable for Inheritance Tax (IHT) have now increased by the funds received from the life assurance policy risking 40% of the proceeds to IHT, which dependant on the size of the business could be a significant loss.

Example of potential Inheritance Tax liability:
Director A and Director B each own 50% of ABC Ltd which is valued at £1,800,000.

Director A dies leaving 50% of the business to his wife. The Cross Option Agreement is executed resulting in £900,000 entering the beneficiaries’ estate.

When the spouse dies, the potential IHT bill on these funds is £900,000 x 40% = £360,000.

These assets are also now at risk from attack from any future remarriage claims, creditors or bankruptcy and Long Term Care costs.

Call Prime Today - we're here to help

If you would like to arrange a free, no-obligation meeting please contact us on 0845 872 2099 or email: info@primewealth.co.uk