Ensure everything is structured in the most tax efficient manner

The overall goal of any wealth management plan is to ensure everything is structured in the most tax efficient manner. 

To do this, retaining and ring-fencing any accumulated wealth is essential.  By structuring correctly, legacy control is possible, intergenerational wealth transfer is possible and strategic inheritance planning is possible. There are various areas to look at when it comes to this structuring. 

These include;

  • Section 72 Policy

Section 72 policies are an insurance policy taken out by the insured person who expressly pay the inheritance tax and approved retirement tax due by the successors are exempt from any CAT (once certain criteria are met).  It is a tax efficient solution for many people to take a Section 72 policy out to remove the potential inheritance tax burden left behind after passing. 

Section 72
  • Section 73 Policy

A section 73 policy is where an individual (a parent, for example) invests into an insurance policy for a minimum of 8 years.  After this period, the individual is free to cash in the proceeds to settle the childs gift tax liability.

  • Wills

A Will is essentially a legal document that dictates what you would like to happen to your possessions after you pass.  Your possessions are known as your “Estate”.  By making a legitimate Will, you could be assisting your spouse/siblings/children by minimizing/removing their tax liability on your possessions.  It may sound simple but far too many individuals do not take the time to consider a Will as part of their wealth management plan even though it has a massive impact on intergenerational wealth transfer, should the unthinkable happen. 

  • Family Partnerships

Family partnerships are a partnership between members of a family, often children and their parents.  It can be a useful vehicle for holding investments and trading assets.   The parents retain a level of control of any assets being traded but the value is dispersed between all members of the partnership. 

An additional benefit of family partnerships is tax efficiency and income sharing.

  • Inheritance Planning

There are numerous ways of minimizing / negating tax liabilities when it comes to Estate planning and advice should be sought from a Qualified Financial Advisor / Wealth Manager to determine the best course of action for each individual situation.  Walfrid Private would be happy to assist with this.