Given the proposals to extend inheritance tax (IHT) to most pension funds and death benefits, we will compare trusts and family investment companies as possible solutions for IHT and intergenerational planning. We will focus on the tax treatment of these arrangements along with various other important non-tax related factors.

We will also revisit the normal expenditure out of income exemption for clients that want to drawdown their pension to make regular gifts from surplus income. Finally we will look at planning opportunities in relation to preserving the residence nil rate band.

Learning objectives:

• Compare where and when a Family Investment Company could be a suitable alternative to trusts.
• Recap on the main types of trusts that can be utilised in estate planning.
• Given the potential extension of IHT to pensions, explain possible IHT planning opportunities using normal expenditure out of income exemption and to help protect the residence nil rate band.