A trust is a legal arrangement where assets such as cash, property or investments are given to someone to look after for the benefit of a third person, saving on tax in the process. Put savings in a trust for your children and it will not count towards your inheritance tax (IHT) bill.
This can protect assets from divorce or the bankruptcy of a beneficiary, and the trustees can control who benefits, what they benefit from, when they benefit and how the money is invested.
There is a catch, however. While these assets do not form part of the beneficiary’s estate for IHT purposes, the trust itself is liable to 20% IHT at inception if the amount invested exceeds the donor’s £325,000 “nil rate” band, and it may be liable to up to a further 6% on every 10th anniversary.
This is can still better from an IHT perspective compared to if the assets were held outright by the individual, leading to IHT being payable on their death.
Quote Of The Day
“My attitude is, if someone’s going to criticize me, tell me to my face.”
Simon Cowell
Alternative Quote Of The Day
“The first few weeks of joining Weight Watchers…you’re just finding your feet.”
Jimmy Carr
Use Investment Bonds
Investment bonds are life insurance policies where you invest a lump sum in a variety of funds. Some run for a fixed period, others have no set term.
When you cash in such a bond, how much you get back depends on how well or badly the investment has performed. All gains and income earned within an investment bond are taxed at 20%, while withdrawals of up to 5% a year are allowed for up to 20 years without incurring an additional tax charge.
One tax-efficient device is to gift a bond to another taxpayer — such as a child or grandchild — before cashing it in, so the original policyholder can avoid paying income tax, as well as inheritance tax.
Alternatively, if the original policyholder is able to reduce their income in the tax year in which the bond is cashed in — perhaps by not taking a bonus from their company, or turning off income withdrawals from a pension for a year — then they may be able to withdraw money personally at the basic rather than the higher rate, known as “top-slicing”.
But beware some heavy charges with these products.
Today’s National Day
NATIONAL LOVE PEOPLE DAY!
PUBLISHERS NOTICE
Streetwise Member Makes $400,000
Dear Streetwise Customer,
Streetwise member Roger Woodman tried making money from the financial markets for YEARS with little success.
In his own words…
“I bought many, many courses, spent thousands of pounds on webinars, books, systems … At the end of it, I worked out that I’d made precisely nothing.”
Maybe you can identify with how he felt?
Well, it all changed for Roger when I personally introduced him to my good friend and expert trader Guy Cohen …
In Roger’s own words … “Trading with just Guy’s system, I’ve made over $400,000.”
That’s a pretty big difference … From “precisely nothing”, to over $400,000, right?
And this success has enabled Roger to live the kind of retirement life he’s always dreamed of. For example, here he is pulling up into Guy’s driveway in his rather swish new car (Guy often meets with his students to help them) …
Better yet, with Guy’s system Roger has never been chained to his computer desk all day …
He says, “It takes me about 30 minutes a day … remarkably little stress … very little drawdowns. If I have got drawdowns, they’re peanuts.”
It’s no wonder he calls Guy’s trading system a “godsend”.
And here’s the good news for you …
I’ve persuaded Guy to hold an exclusive live training session for Streetwise members.
During this short training he’ll walk you through the exact same 3-step system that made Roger $400,000.
And even show you how to automate it so you can profit in less than 30 minutes per day.
The training takes place at 8pm on Thursday.
And it’s absolutely FREE.
Reserve your free spot now.
Who knows …
Maybe you’ll become Guy’s next protege and make nearly half a million dollars too!
But that can only happen if you attend.
Reserve your spot now.
Best wishes,
John Harrison
PS.
Of course, Roger isn’t the only person whose life has been transformed by Guy’s trading system.
There are COUNTLESS others too, like …
- Chloe Hung who made $6,528 in 100 days … and then another $32,616 after that!
- G Lawrence who made $26,733 in 9 weeks …
- And Alan Tunnicliffe who says the extra $1,288 tax-free income he’s making “will make a huge difference to my life right now”.
Guy even helped well-known online business coach Simon Coulson make $25,356 in just six weeks … and that was with ZERO prior trading experience!
Want to become Guy’s next success story?