What Investors Need to Know

In the next 5 to 10 years alone, an estimated £1.2 trillion is expected to pass down through the generations, from those who were born before the mid 60s – and between now and 2050, that figure will rise to £5.5 trillion. The average ‘estate’ is also becoming more valuable, primarily due to the disproportionate increase in property prices over the last few years.

All of this means that the subject of tax-efficient wealth transfer is becoming increasingly high profile, and something which can no longer be ignored. It’s vital that members of the so-called ‘Baby Boomer’ generation, and those born previously, start to think about how they can maximise any legacies they are leaving – to reduce or remove inheritance tax for their beneficiaries wherever possible.

Stellar Asset Management works with investors, both directly and through financial advisers, to ensure the tax-efficient transfer of wealth between generations. The resources contained in this section of our website have been created to provide valuable information for investors as they consider their inheritance tax planning requirements. To find out more about how inheritance tax is calculated, please click here.

Key Facts

Over a million adults receive an inheritance in any given year

In the UK, over 70% of household wealth is held by those who are 50 or older

The value of the average inheritance will increase from £62,000 to £91,000 between now and 2030

Between 1995 and 2015, household net worth in the UK rose from £2.8 trillion to £10.2 trillion

Between 2012 and 2014, the amount of money which was transferred between generations rose from £49bn to £59bn

On average, property is expected to account for over 70% of each inheritance over the coming years

How Stellar Asset Management Can Help

This unprecedented inheritance boom is mainly being driven by the huge increase in house prices, meaning that many estates will now add up to a higher value than the inheritance tax threshold of £325,000 per individual. As a result, more and more households are having to pay inheritance tax, which is currently 40% on everything over the threshold. To illustrate this more clearly – £5,400,000,000 was paid in inheritance tax in the UK during the 2017/18 financial year.

At Stellar Asset Management, our aim is to ensure that each family can legally transfer the maximum amount between generations, without paying unnecessary inheritance tax. We achieve this by taking advantage of something called Business Relief (BR), which was established by the government in 1976.

This enables any individual or business owner to achieve full inheritance tax relief in just two years, rather than having to wait seven years for inheritance tax relief using traditional trusts or gifts – which is the more widely known route. We achieve this through carefully constructed portfolios which have been created specifically for the purpose, investing exclusively in business activities that qualify for Business Relief.

Next Steps for Investors

Stellar Asset Management offers a wide range of inheritance tax services that invest exclusively in business activities which qualify for Business Relief – to provide full relief from inheritance tax after just two years. This one of the most effective ways for individuals and business owners to ensure that the maximum amount can be passed on as an inheritance.

We work primarily through financial advisers, but also directly with more experienced investors. To find out more about our individual Inheritance Tax Services, please follow the links at the bottom of the page, or get in touch with us today.

Platform Services

We currently work with the following Investor Platforms. Please click on the relevant link to find more information on each one, or to log in.

Independent Inheritance Tax Liability Insurance – Two Year Cover

For investors contributing to a Business Relief qualifying service, AIG offers a term assurance policy – specifically designed to cover any liability for inheritance tax in the first two years of planning.

Find out more

 

Take a look at our wide range of Inheritance Tax Services

Stellar AiM IHT Service

A discretionary managed portfolio that mitigates risk through a diversified selection of 40 AiM stocks. This service is available for advised clients, on many of the UK’s largest wrap platforms.

Stellar AiM ISA IHT Service

The Stellar AiM IHT Service is also available for investment via an ISA, which enables investors to benefit from both Business Relief qualification and all ISA tax benefits. This service is also available on various wrap platforms.

Stellar Business IHT Service

A discretionary managed service which provides numerous succession planning and tax efficiency options for business owners – either following the sale of a company, or to invest excess company capital to maintain tax efficiency.

Stellar Growth IHT Service

This discretionary managed service involves the creation of a privately owned limited company for each investor, to access a portfolio of asset-backed Investment Sectors – targeting 5% growth per annum.

Stellar Income IHT Service

An asset-backed discretionary portfolio targeting a 4.5% income per annum, without reducing the capital – distributed bi-annually as a dividend.

Take a look at our wide range of Inheritance Tax Services