Inheritance Tax and

Investment Planning Seminar

withDenis Mitchell

House Keeping

• Mobile Phones.• Toilets.• Fire Drill.

The Demelza Group are proud sponsors of The Official International Classical Concert Series

2015/16 at the Hall For Cornwall.As part of this series of concerts “The Aronowitz

Ensemble”, will be performing here this evening. If you would like to attend, we would be more than happy to arrange complimentary tickets for you.

Objectives

1. Inheritance Tax (IHT).2. Asset Protection.3. Investment Planning.

Agenda• Introduction to “The Demelza Group”.

• IHT – Calculation & 7 ways to reduce it.

• Asset Protection.

• Break.

• Investment Planning.

• Summary & question and answers session.

Seminar Notes &

Work Book.

The Demelza Group

The Demelza Group comprises two separatecompanies:

• Demelza Financial Planning Ltd – Trading as Demelza Lifestyle Financial Planners – regulated by the Financial Conduct Authority (460974).

• Demelza Independent Estate Planning Ltd.

Meet the teamDenis Mitchell – Managing Director.

Chartered Wealth Manager.Chartered Financial Planner.Certified Financial Planner.

Tracey Osborne – Administrator.Carolyn Daw – Marketing & Public Relations.Jeremy Parry – Accountant.Countrywide Tax & Trust Corporation – Legal Partner.

Inheritance Tax

“Inheritance tax is a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue”

Sir Roy Jenkins, Former Labour Chancellor of the Exchequer

40pInheritance tax

in every

Inheritance Tax

• Inheritance Tax Calculator.

Inheritance Tax

• Inheritance Tax Calculator.• Readily Realisable Assets.

Inheritance Tax

• Inheritance Tax Calculator.• Readily Realisable Assets.• Business Interests & Assets (BPR & APR).

Inheritance Tax

• Inheritance Tax Calculator.• Readily Realisable Assets.• Business Interests & Assets (BPR & APR).• Pension Funds.

Inheritance Tax

• Inheritance Tax Calculator.• Readily Realisable Assets.• Business Interests & Assets (BPR & APR).• Pension Funds.• Land, Property & Other Assets.

Inheritance Tax

• Inheritance Tax Calculator.• Readily Realisable Assets.• Business Interests & Assets (BPR & APR).• Pension Funds.• Land, Property & Other Assets.• IHT Allowances – Single £325,000 & Couple

£650,000.

7 Ways to reduce IHT

1. Make a Will.

7 Ways to reduce IHT

1. Make a Will.2. Invest to reduce & remove the tax.

7 Ways to reduce IHT

1. Make a Will.2. Invest to reduce & remove the tax.3. Give your money away - 7 year clock.

7 Ways to reduce IHT

1. Make a Will.2. Invest to reduce & remove the tax.3. Give your money away – 7 year clock.4. Trust Planning.

7 Ways to reduce IHT

1. Make a Will.2. Invest to reduce & remove the tax.3. Give your money away – 7 year clock.4. Trust Planning.5. The use of debts.

7 Ways to reduce IHT

1. Make a Will.2. Invest to reduce & remove the tax.3. Give your money away- 7 year clock.4. Trust Planning.5. The use of debts.6. Gifts & allowances.

7 Ways to reduce IHT

1. Make a Will.2. Invest to reduce & remove the tax.3. Give your money away – 7 year clock.4. Trust Planning.5. The use of debts.6. Gifts & allowances.7. Life Assurance.

Invest to reduce & remove the tax

• Business Property Relief.• Trusts – Discounted Gift Trusts & Loan

Trusts.• Enterprise Investment Schemes.

Give your money away

• Cash – Unlimited if you live 7 years.• Other assets – CGT.• After 7 years you have an additional IHT allowance.• No control.• Money could be at risk e.g. divorce, bankruptcy, IHT,

care fees to name a few issues.• You might need it.

Trust Planning

• In general assets shouldn’t be given to an individual they should be placed in Trust.

• What is a Trust?• Asset is in Trust, and therefore is legally owned by

the Trustees.• Asset therefore doesn’t form part of the

beneficiary’s estate and therefore aren’t included for IHT, care fees, divorce, bankruptcy etc.

Asset Protection

What is Asset Protection?• Protecting your savings, investments, property etc

against numerous threats, in particular HMRC, local authorities and changes in family circumstances.

• Most strategies are based around the use of Trusts.• Assets should not be left or given to an individual.

Where possible a Trust should be used.

Asset Protection1. Care Fees.

Asset Protection1. Care Fees.2. Inheritance Tax.

Asset Protection1. Care Fees.2. Inheritance Tax.3. Marriage After Death (MAD).

Asset Protection1. Care Fees.2. Inheritance Tax.3. Marriage After Death (MAD).4. Divorce.

Asset Protection1. Care Fees.2. Inheritance Tax.3. Marriage After Death (MAD).4. Divorce.5. Bankruptcy.

Asset Protection1. Care Fees.2. Inheritance Tax.3. Marriage After Death (MAD).4. Divorce.5. Bankruptcy.6. Lasting Power of Attorney.

Asset Protection1. Care Fees.2. Inheritance Tax.3. Marriage After Death (MAD).4. Divorce.5. Bankruptcy.6. Lasting Power of Attorney.7. Challenged Will.

Asset Protection1. Care Fees.2. Inheritance Tax.3. Marriage After Death (MAD).4. Divorce.5. Bankruptcy.6. Lasting Power of Attorney.7. Challenged Will8. No Probate Fees.

Asset Protection1. Care Fees.2. Inheritance Tax.3. Marriage After Death (MAD).4. Divorce.5. Bankruptcy.6. Lasting Power of Attorney.7. Challenged Will8. No Probate Fees.9. Reduced Delays.

Asset Protection1. Care Fees.2. Inheritance Tax.3. Marriage After Death (MAD).4. Divorce.5. Bankruptcy.6. Lasting Power of Attorney.7. Challenged Will8. No Probate Fees.9. Reduced Delays.10. Protecting Disabled Benefits.

Care Fees

• Mirror Wills.• Survivor inherits everything.• Survivor requires care and therefore all

the assets are at risk.Solution: Equalise estate and each leave their share to a Trust.

Inheritance Tax• Mirror Wills.• Second death everything passes to children.• The children’s estate is increased and

therefore possibly more IHT.Solution: Equalise estate and each leave their share to a Trust.

Marriage After Death (MAD)

• Mirror Wills.• Wills are null & void after marriage.• Rules of intestacy.Solution: Equalise estate and each leave their share to a Trust.

Lasting Power of Attorney (LPA)

• Property & Finance LPA – Enduring Power of Attorney (EPA).• Health & Welfare LPA.

Break

Investment Planning1. Emergency Fund.

Investment Planning1. Emergency Fund.2. Debts.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.6. Timing.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.6. Timing.7. Active v Passive.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.6. Timing.7. Active v Passive.8. Pound Cost Averaging.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.6. Timing.7. Active v Passive.8. Pound Cost Averaging.9. Rebalancing.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.6. Timing.7. Active v Passive.8. Pound Cost Averaging.9. Rebalancing.10. Charges.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.6. Timing.7. Active v Passive.8. Pound Cost Averaging.9. Rebalancing.10. Charges.11. Tax – Pensions.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.6. Timing.7. Active v Passive.8. Pound Cost Averaging.9. Rebalancing.10. Charges.11. Tax – Pensions.12. Compound Interest.

Investment Planning1. Emergency Fund.2. Debts.3. Time Scale.4. Attitude Towards Risk/Loss.5. Asset Allocation.6. Timing.7. Active v Passive.8. Pound Cost Averaging.9. Rebalancing.10. Charges.11. Tax – Pensions.12. Compound Interest.13. Discretionary Fund Management (DFM).

Active v Passive

•Marketing Timing.• Stock Picking.• Charges.

Asset Allocation

• This is the key to maximizing the return on your money within your attitude towards risk – 90% to 95% of your returns.

• Assess attitude towards risk.• Model portfolio based upon your attitude towards risk.• Passive.• Low charges.• Tax efficient – Pensions.

Charges

• Very important.• The funds we use:–Initial 0.25%.–Ongoing 0.545%•Normal funds – ongoing 2.0% plus.

Summary1. Inheritance Tax (IHT): Invest to reduce & remove the tax.

Give your money away.Trust Planning.

2. Asset Protection: Care Fees.Inheritance Tax.Marriage After Death (MAD).Mirror Wills??????

3. Investment Planning: Active v Passive.Asset Allocation.Charges.

The Next Step

Nothing.

Initial meeting at our cost to explore how our servicescan benefit you.

How We Work

Two options:

1. One off transaction.

2. Become a client – ongoing relationship.

Any Questions?

Planning Process

Real Wealth Management Plan:

Asset Management Plan.Estate Management Plan.

Fees

Transactions – one off fee. Half paid at the instructionstage and the balance is paid on completion of the work.Clients -

Advisory Process

1. Initial Meeting at our cost.2. Fact Finding Meeting.3. Recommendations & Plan.4. Implementation.5. Ongoing support and regular planning meetings, at

least annually.

Advisory Process

1.Real Wealth Management Plan.2.Implementation.3.Ongoing advice and meetings at least on an annual

basis.