Transferring an equity portfolio for IHT planning

Learn how Jane protected her large equity portfolio from inheritance tax using the Stellar AiM Inheritance Tax Service.

The Client

Jane has recently been widowed and she has an equity portfolio of £200,000. When her husband died, he used up the entirety of his nil-rate band (NRB) allowance. Jane’s property and other assets will exceed her NRB.
Jane is concerned by the large inheritance tax (IHT) bill that her children will face when she passes. She wants to pass as much as possible to her children but also wants to keep control of her capital during her lifetime, as she is concerned that she may need to fund medical and long-term care costs in the future.
Jane has considered more traditional planning methods, but her deteriorating health means that there may be insufficient time to utilise gifts or trusts and life assurance policies are likely to be expensive if they are approved.

Our Solution

After speaking to her financial adviser, Jane decided to invest in the Stellar AiM Inheritance Tax Service because it should qualify for 100% relief from IHT after two years. Additionally, Jane can keep full control of her money, in case she needs it in the future.

Key Features

The table below illustrates that even assuming the value of Jane’s Stellar AiM Inheritance Tax Service portfolio does not increase, her beneficiaries should still able to save nearly £80,000 after all fees are paid.

Results after 3 years

Important Information

Risk warning: Your capital is at risk.  Investments can fall as well as rise and investors may not get back the full amount invested. Investments in unquoted companies are less liquid and are higher risk than larger companies. The rates of tax, tax benefits and tax allowances described are based on current legislation and HMRC practice. They are not guaranteed, are subject to change and depend on personal circumstances. Please refer to the latest product literature before investing: your attention is drawn to the risks and fees contained therein. 

This document dated 7th December 2022 is intended for retail investors and their advisers and has been approved and issued as a financial promotion under the Financial Services and Markets Act 2000 by Stellar Asset Management Limited (‘Stellar’). This document is for information only and does not form part of a direct offer or invitation to purchase, subscribe for or dispose of securities and no reliance should be placed on it. Stellar does not offer investment or tax advice or make recommendations regarding investments. Stellar is authorised and regulated by the Financial Conduct Authority (Firm reference No. 474710). Registered in England No. 06381679. Registered office: 20 Chapel Street, Liverpool L3 9AG.