It is said that death and taxes are the only two certainties in life, and in most countries the two are linked. An inevitable part of the financial planning process is the division of your estate. However, estate planning is not just about avoiding IHT on the first death, it is also about births, deaths, marriages and divorces through the generations. Doing nothing is not an option. Without proper estate planning, many people can end up leaving a substantial tax liability on their death, considerably reducing the value of the estate passing to chosen beneficiaries. With Intelligent Investments, we can help and guide you through the steps you need to take. Estate administration Creation of trusts to protect assets and reduce tax liabilities Creation of a will or power of attorney suitable for your wishes Advice on living wills and powers of attorney Up-to-date knowledge of the legal framework regarding Wills and IHT Friendly, discreet and professional assistance We have also established close links with some of the pre-eminent professional service firms internationally. These contacts help us provide a comprehensive service to clients in specialist areas where, for example, solicitors and accountants will have the relevant expertise. This ensures we are able to deliver a fully rounded service that covers all of the changing financial needs and objectives of you and your family throughout your lifetime.

Careful planning and expertise is critical to make sure that you pay no more tax than you should. Tax planning and, importantly, minizing tax, lies at the heart of Intelligent Investments. We can provide help and support for your tax needs, whatever your circumstances. We can advise you about reducing tax liabilities, letting your property back home, and support you with information about local tax regimes It more important to take specific tax planning advice from professionals who understand the complexities of tax legislation. With Intelligent Investments you can be advised on all related tax matters, including income, employment, pensions, residence/domicile, setting up business, capital gains tax, national insurance, and HM Revenue and Customs (formerly the Inland Revenue) enquiries.

IHT no longer impacts only the very wealthy. An increasing number of people who are subject to IHT due to rising property prices and a failure to increase the IHT threshold in line with house price growth has meant that more people than ever face the prospect of IHT. Expats need careful advice on IHT planning. Your residency does not influence liability to UK IHT - only your domicile status. You may have been living abroad for some time now, but don’t think that this means you have escaped. Two simple questions will enable you to decide. Firstly, where are you domiciled? Secondly, where are your assets/investments located? Domicile is a legal term - it means you 'belong' to a certain country - often the place you regard as your homeland. For IHT purposes there are two tests of domicile, the 'common law' test and the statutory test. If you domiciled in the UK under either test, your world-wide estate will be assessed to IHT when you die. The basic principles of the English common law domicile are as follows: A person is only able to have one domicile at any given time. Contrast this with dual citizenship/ nationality, for example. Every person has a domicile of origin, which is generally speaking the domicile of the person’s father when the child is born. If a couple married prior to January 1st 1974, the wife is treated as having acquired the same domicile as her husband on that date. To acquire a new domicile by choice, it is necessary first of all to move to a new jurisdiction and, one must then prove that they have formed an unequivocal intention to remain permanently in that particular jurisdiction.   Proving the necessary 'state of mind' is often difficult, but in short no one factor will be conclusive, it is necessary to look at all the circumstances as a whole. It is important to note that the onus of proof is on the person claiming the change of domicile. For IHT Purposes, you are deemed to be UK domiciled if you have been resident in the UK for 17 out of the past 20 tax years. The IHT threshold for the 2007/8 tax year has been set at £300,000.* Above this threshold IHT is charged, and unlike income tax, IHT is charged at a flat rate of 40%. Many people want to take positive steps during their lifetime to reduce IHT. The solution can usually be found by taking advantage of available exemptions, devising a properly structured Will and considering specific investments to reduce the potential liability. Understanding the actual value of all of your assets, including property, personal belongings, fine wines, investments and even pension funds, will not only help you to plan for IHT effectively, it will also save you money on insurance policies, and can even take some of the guesswork out of saving for your retirement. *The threshold will stand at £312,000 for 2008/9, £325,000 for 2009/10 and £350,000 for 2010/11.

Trusts can be one of the most effective ways to reduce tax or protect assets, as assets transferred to a trust no longer form part of the Settlor’s property. This means the assets cannot normally be seized if the Settlor gets into financial difficulties, for example, as a result of bankruptcy or divorce. The rules of many onshore jurisdictions may, in certain circumstances, order the trust assets to be transferred back to the Settlor. This could arise if a creditor is able to prove that the Settlor transferred assets into trust with the intention of avoiding a current or future liability, or if the liability arose within a statutory period after the transfer into trust. To overcome this problem many offshore jurisdictions have enacted legislation creating the 'Asset Protection Trust'. This protects assets transferred into trust as long as the Settlor is solvent at the time of the transfer and does not become insolvent as a result of it. For maximum security it is important to set up a trust in an offshore jurisdiction that has enacted this type of legislation.

How much am I worth? Inheritance tax is not just for high-net worth individuals. Use our wealth calculator today to see how much you could be liable for. Inheritance Tax (IHT) is growing in importance, both for the government in terms of how much money it raises and for individuals as more and more people are liable for . Expats need careful advice on IHT planning. You may have been living abroad for some time now, but don’t think that this means you have escaped. It was designed as a wealth tax but IHT currently bites at £300,000.* Following sharply rising house prices, many families who would consider themselves anything but wealthy will find themselves caught in its net. The average price of a detached property in the UK, at £326,396, is above the inheritance tax threshold of £300,000. The threshold will stand at £312,000 for 2008/9, £325,000 for 2009/10 and £350,000 for 2010/11. The wealth calculator will calculate the approximate value of your estate and give you an indication of your potential IHT liability. To see how much your worth, enter an estimated value of your assets in the boxes below. Then proceed to Step 2.