Passing on assets to the next generation

Passing on asets to the next generation is clearly on of the biggest steps an individual takes. Personal objectives for their families is paramount. however, they also seek to minimise tax costs.

Planning and advice are critical to these decisions. A good tax adviser will play a major part. Some issues to consider are

Current low capital values.

 Making a gift is a disposal for Capital Gains Tax. Low asset values minimise this. therfore, now may be a good time to consider passing on assets.

Use of reliefs

Taxpyers should organise theirtransactions to use reliefs such as

  • Retirement relief for Capital Gains Tax. This need not mean actual retirement
  • Business and Agricultural Property Relief¬†
  • Principal Private Residence

Possible use of trusts

These can be used for example to

  • care for incapacitated relatives
  • pass assets to children while ensuring responsible use
  • manage CAT thresholds and liabilities

Family partnerships

These are structures to enable involving your children in business without ceding control. They get around some of the complexities of trusts

Leave a Reply

Spam protection by WP Captcha-Free