The WAY Inheritor Plans

Helping your clients mitigate inheritance tax liabilities while retaining access to capital

Your guide to the WAY Inheritor Plans

The Plans come in several different forms which may be used individually or in combination to achieve more than one goal.

All of these Plans have common aims – to help clients reduce potential inheritance tax liabilities by using current reliefs and exemptions. Client circumstances can and do change, therefore individual planning should be done by an experienced professional adviser, and recommendations will differ from one client to another. The Inheritor Plans will often be part of a wider strategy to cover different aspects of the inheritance tax planning spectrum.

Below is a description of each plan and who it may be suitable for:
 

The Award Winning WAY Flexible Inheritor Plan

This Plan may be suitable for investors who wish to make a significant gift to reduce their inheritance tax liability. They also want some access to the capital at a later date if their circumstances subsequently change, and want the ability to help their beneficiaries financially should the need arise. The investment is gifted into a flexible reversionary interest in possession trust for the benefit of the chosen beneficiaries.

 

The WAY Gifts from Income Inheritor Plan

This Plan may be appropriate for investors who wish to make gifts out of surplus income each year and take advantage of the ‘normal expenditure out of income’ inheritance tax exemption but also want a solution that can adjust to changing personal/family circumstances. The investments bought by the gifts are placed in a flexible reversionary interest in possession trust for the benefit of the chosen beneficiaries.

 

The WAY Inheritor Loan Plan

This Plan may be suitable for Investors who wish to carry out inheritance tax planning but cannot afford, or are unwilling, to give up all access to the capital. However, they are prepared for future investment growth to be given away. The investor makes an interest free, repayable on demand, loan to the trustees of a flexible interest in possession trust, who will then invest the monies.

 

The WAY Discounted Inheritor Plan

This Plan may be appropriate for investors who can only afford to make a significant gift if they can continue to receive an income from it. In return, they must accept that the ‘income’ basis is fixed at outset and they cannot have any other access to their capital. Medical underwriting is also required so that the level of any discount on the original gift can be determined. The investment is gifted into a fixed reversionary interest in possession trust for the chosen beneficiaries.

 

The WAY Duo Inheritor Plan

This Plan effectively combines the Flexible and Discounted Plans. It may be attractive to investors who wish to make a significant gift, require the certainty of an ‘income’ for the short term only but would like potential access to further capital should their circumstances change in the future.

The investor makes a gift to a specially designed interest in possession trust under which fixed and flexible reversions are carved out in favour of the investor.

 

The WAY Estate Transfer Plan

This Plan may appeal to investors who wish to make a potentially exempt transfer, require an annual ‘income’ but want control over whether to draw this in full each year. Investors must be prepared to undergo medical underwriting so that the level of any discount on the original gift can be determined. They must also accept the restrictions of a bare trust. The investor’s capital is invested in a series of offshore single premium endowment policies, which cannot be surrendered. These are written subject to a bare trust, where the death benefits are held for named beneficiaries and the maturity benefits are held for the investor absolutely.

 

For full details of the individual plans, please refer to the product brochures in the Document Library.

If you wish to talk to someone about the WAY Inheritor Plans please complete your details on our Contact Page or telephone 01202 890895.

 

Please Remember: 
The price of shares and the income from them can go down as well as up as a result of changes in the value of the underlying investments and currency movements. An investor may not get back the amount originally invested. Past performance is not necessarily a guide to future returns.