Charitable Giving

Lifetime Planning to Reduce IHT Liability

We reduced our client’s estimated IHT liability through lifetime planning. Client had wealth of in access of £3million. We also advised the client on charitable gifting and the reduction in IHT rate with a 10% gift to charity and are advising on lifetime gifting to further reduce estimated IHT liability.

Charitable Trusts

Restructuring Trust to Charitable Incorporated Organisation (CIO)

We successfully formed and registered a Charitable Trust appointing two partners of DMH Stallard named as Trustees under Will of the deceased. With a portfolio of over 50 properties, we agreed that restructuring the Trust to a Charitable Incorporated Organisation (CIO) would be the best option.

Creating a lasting charitable legacy

Lasting Charitable Legacy

We advised a HNW individual on drafting a Will, which included a Discretionary Trust and bespoke beneficiary provisions ensuring a philanthropic yet flexible position; and post death, advising the executors as to the types of charitable structure which can be created and establishing a Charitable Incorporated Organisation (CIO).

LPA

Lasting Power of Attorney

We often prepare Lasting Powers of Attorney as part of our overarching private client service, encompassing advice on wills, trusts, inheritance tax planning and succession planning. It’s an area of our practice that demonstrates the way we link various specialisms across the firm to enhance the service we deliver to clients.

FAMILY INVESTMENT COMPANY

Commercial Property Acquisition

A sole founder wished to acquire a commercial property through an FIC, retaining full board-level control while building in succession planning from the outset. We novated 50 % of the director’s loan to the founder’s adult daughter by way of gift, enabling value to move to the next generation while preserving the company’s obligation to repay and ensuring that repayment remained subject to board approval, keeping control firmly with the founder.

FAMILY INVESTMENT COMPANY

Succession Planning Using an FIC

A husband and wife wished to pool £4m of liquid wealth in a Family Investment Company while retaining board-level control. We incorporated the FIC with bespoke articles, including permitted-transfer restrictions, compulsory transfers on bankruptcy or family separation, and tag-along and drag-along rights.

IHT Planning with an FIC

A client wished to house liquid wealth, generated from a recent business sale, in a Family Investment Company while retaining governance control. The company was capitalised through an interest-free, unsecured, on-demand loan facility of up to £5m from the founder, providing flexibility and the option for the benefit of such loan repayment to be moved out of the client’s taxable estate as part of their IHT planning.

International Divorce

DMH Stallard advised, led negotiations and achieved favourable financial settlement for our client. One party was based in the US and split his time between the UK and US each year. This cross-border matter necessitated input of experts in both UK and US.

Intervening to prevent client being pressurised into making investments

One of our long-standing clients contacted us as he was concerned that he was being pressurised to invest in a bond and to place his property in trust. We were able to assist the client in making his own decisions, explaining to him his own financial situation to allow him to plan for his future. We prepared a Property and Financial Affairs Lasting Power of Attorney where the client appointed the DMH Stallard Trust Corporation as his attorney, enabling us to assist and support him to make and execute decisions whilst he retained mental capacity. Furthermore, the LPA allowed the firm to protect our client’s best interests following the loss of mental capacity.

Advice on mitigation of inheritance tax

We provided technical advice to clients who were in their eighties with several million in assets and a substantial annual income. We advised on ways to substantially mitigate a potential inheritance tax liability of close to £1million. Steps we advised our clients to take included giving substantial gifts to family members on a regular basis to avoid the accumulation of surplus income in their estates and to insert specific provisions in each will to reduce exposure to inheritance tax.