Estate Planning

We help find appropriate ways to pass on your wealth efficiently.

We help you assess your financial situation, think about what you’d like to achieve and design a plan that allows you to distribute your wealth efficiently. We’ll also consider the implications of any decisions within your overall wealth plan.

Without careful consideration and planning, inheritance tax can have a substantial impact on your family’s assets and inheritance tax planning is best approached as a continuous process. We help find appropriate ways to pass on your wealth efficiently. It’s important to review your plan regularly to make sure it’s appropriate for your age and reflects any changes in your family, as well as the latest laws and regulations. At every stage, we work with you to strike the right balance between passing on wealth and retaining control, so that you will always be financially secure.

Planning for future generations after the sale of a business

Estate planning

A couple was introduced to SG Kleinwort Hambros by their accountant in order to receive professional advice as to how best to structure the proceeds of the sale of their business.

They have two children and four grandchildren and had always envisaged their business and its legacy to be for the benefit of future generations. However, they were also now seeking a replacement income stream.

We advised they establish a discounted gift trust whereby they invest a lump sum to provide a pre-determined level of income for the rest of their lives. A proportion of this investment would be immediately outside of their estate for the purposes of inheritance tax and the remainder would be outside of their estate after a period of seven years. The underlying investments would be managed by a SG Kleinwort Hambros investment manager on a discretionary basis in line with their attitude to investment risk.

The clients appointed their children and grandchildren as beneficiaries of the discounted gift trust and upon the clients’ death, the children and grandchildren would become direct owners of the investments. These beneficiaries would then have the option to leave their inheritance invested, whereby it could continue to grow without incurring capital gains tax.

How should you structure the proceeds of the sale of your business?

Important information

Any services and investments may have tax consequences and it is important to note that the SG Kleinwort Hambros does not provide tax advice. The level of taxation depends on individual circumstances and such levels and bases of taxation can change. You should seek professional tax advice to understand any applicable tax consequences.