Family investment companies are the go-to vehicle for numerous clients. Some may argue that the changes in tax rates have shortened the life expectancy of these structures but there are a multitude of benefits to FICs even with the increase in corporation tax.
Follow the below link to MBL for my webinar “FICs - Are They Here To Stay?”
(Spoiler alert - my answer is yes!)
Tax Professionals: Family investment companies are undoubtedly the in-vogue estate planning vehicle, but are they here to stay? There are known changes to tax rates coming in over the next few years and a raft of potential threats that advisers could face, so getting the basics of these structures right is crucial. Presented by Katharine Watson, a senior associate at Mills & Reeve with a wealth of experience in this area, this webinar will explore when a FIC is appropriate for a client and when a personal investment company, a trust or a partnership may be the more suitable vehicle.
https://lnkd.in/eSYVcA_c#mblseminars#onlinelearning#taxtraining#FICs
Significant changes to the taxation of non-doms have been confirmed by Labour and will take effect from April 2025.
Fuller details are to follow in the Autumn Budget but the advantageous tax regime available to foreign domiciled individuals will be significantly eroded after their first four years of UK tax residence, with the expected result that internationally mobile people will begin to utilise planning structures such as family investment companies to help preserve family wealth.
#PrivateClient#PrivateWealth#NonDoms
Please read the below summary from Colin Rogerson about a (very) recent case relating to surrogacy.
International surrogacy is complex and I have learned a lot from working with Colin as to how that affects clients from a private client and trust law perspective.
I have worked with a number of clients going through their surrogacy journey to prepare Wills, guardianship appointments and sometimes Lasting Powers of Attorney. Be aware that the terminology in the standard precedents that we all use, are not always sufficient and it is necessary to work with the relevant surrogacy agencies to discuss what they need the documents to cover, and to what extent we can do that under English law.
Having these documents in place is one of the first requirements because of the mismatch between how the UK treats parentage compared to other jurisdictions.
Whereas, in some countries, such as the US, orders can be put in place in advance of a baby being born, this is not the case in the UK. Only once the child is born can the new parents can apply for a parental order in the UK. This means there is a period of time where a child born through surrogacy is not included in the statutory definition of a ‘child’. A point that was covered in this reported case.
I have loved working with Colin and helping clients going through this journey. This is a crucial area of law that will no doubt change in the future and it’s great that Colin and Claire Burton were part of this case getting reported.
Head of Fertility Law at Mills & Reeve.
Fellow of IAFL | Fellow of Academy of Adoption and Assisted Reproductive Technology Attorneys
Re AB (A Child) (2014) - Claire Burton and I Mills & Reeve | Family and children acted for the applicants instructing Dorothea Gartland KC 4PB and Edward Bennett of Harcourt - Family Law
The President of the Family Division confirmed that a parental order could be made where the child had already been adopted by the applicants (in this case a U.S. adoption which was automatically recognised in the UK).
In this case, the parents of the child born through surrogacy in the U.S. sought to establish their child's interest as beneficiary in family trusts in Guernsey and England. Guernsey law did not recognise the California parentage order and so the parents obtained a confirmatory adoption in California which would be recognised.
UK law also automatically recognises adoption orders made in the U.S, which posed a problem for an English trust created before 1976 and which excluded adopted children. An English parental order was therefore necessary.
The court heard submissions from the Secretary of State for Education and on behalf of the child, both of whom supported the applicants' submissions.
Another reminder of the legal complexities of international surrogacy and of the need for international recognition of parentage (currently lacking but "on the agenda" of the Permanent Bureau at The Hague.
Also useful for private client and trusts lawyers, since issues arising from surrogacy are no longer confined to the specialist fertility lawyers among us. As surrogacy becomes a more popular form of assisted reproduction, it is increasingly important for lawyers from other disciplines to be aware of the issues!
https://lnkd.in/ePFAmMnE
This is an interesting read from Medi Evans about the potential for claims on Michael Gambon’s estate.
Yes we have testamentary freedom when it comes to Wills but, as advisers, we need to make sure that clients understand who may be entitled to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975
Contentious Trusts & Probate Solicitor at Mills & Reeve
🧙♂️ Let battle commence! 💷
Sir Michael Gambon, famous for his role as Professor Albus Dumbledore, has reportedly left his £1.5million fortune to his wife of 61 years (and their 60 year old son in substitution). This seems straightforward enough until you learn that, for the last two decades of his life, Sir Michael split his time equally between his wife and his girlfriend with whom he shared two sons. Despite this equal division of time, Sir Michael’s girlfriend is set to receive nothing from his estate while his two sons from the relationship have each been left £10,000 and a trophy. 🏆
Although testators in England and Wales are free to leave their estate to whoever they like, my below article explains how disinheriting a relative or dependent doesn’t necessarily mean they won’t benefit as the Inheritance (Provision for Family and Dependants) Act 1975 provides a helpful lifeline to those left without the necessary levels of financial support. It seems even Dumbledore couldn’t magic away this possible estate dispute! 🪄
#EstateDispute#1975Act#WillsAndProbate
Sarah Cormack and Jill Wright have prepared this really useful note on the changes for non doms in last week’s Budget.
These are pretty big changes and not something we were necessarily expecting from this government. If you or any of your clients are concerned or want to think about planning pre 6 April 2025, let us know.
Also remember that not all is lost for non doms (and that’s also the case for any other potential changes that a Labour government may bring in). We expect to see more family investment companies being used by international families going forward.
Mills & Reeve are market leaders for FICs and something that I personally specialise in. We consider FICs from a private client / succession perspective as opposed to them being a simple corporate structure that anyone can incorporate.
Get in touch if you would like to talk through the options to see if a FIC is the way to go.
Here are some further thoughts on the changes announced in this week’s Budget and their impact on non-domiciled clients (and currently domiciled clients who are thinking of leaving the UK).
Read the full article below to find out more.
#SpringBudget#PrivateWealth#NonDomiciled#UKTaxation
March Budget. There's a bit more to this one than we usually get in the private client world
I can't summarise it any better than Elizabeth Field below or Charlotte Shaughnessy in this link --> https://lnkd.in/gD6adbHT so give them both a read!
Partner at Mills & Reeve // One of eprivateclient's "35 under 35" 2017 // Innovation Champion
Well, from what I've read so far, Spring Budget 24 was a bit more interesting than expected.
What's in?
- the well-trailed 2% NIC reduction from 6 April 2024
- reduced top rate of CGT on residential dwellings from 28% to 24% from 6 April 2024
- increase in High Income Child Benefit threshold
- (consultation on) a changed IHT regime from 2025?
- (consultation on) a new £5k UK ISA
- increase in VAT de/registration thresholds
- extending APR to certain environmental schemes from April 25
What's out?
- always having to pay IHT before applying for a grant of probate WEF 1 April 2024, instead applying for a grant on credit
- Multiple Dwellings Relief for SDLT from 1 June 24
- Furnished Holiday Lets regime
- Non dom regime (sort of - a replacement regime will apply with reduced timelimits).
Budget docs here for anyone who wants to do some bedtime reading.. https://lnkd.in/dbc4q7Kn#budget2024#privateclientmatters#taxchanges
Interesting to read this case today about a group of grandchildren trying to claim undue influence when they each received only £50 from their grandfather's Will. The judge was not convinced and stood by the testator having testamentary freedom to leave his estate to whoever he wanted.
https://lnkd.in/eg7WR_Xw
Undue influence is not an easy claim to make. Have a look at the article below for a summary of the rules and how it can be claimed
You can't avoid the news this morning highlighting the rumours that the Conservatives may scrap the non-dom rules in the Budget next week. Here are a few thoughts, and why it doesn't necessarily spell disaster for international clients
Private Affairs Business Owners Special
Emma Geale has been working (ridiculously) hard to bring back the Mills & Reeve’s Private Affairs newsletter and the first issue is a fantastic read.
The digital version will be hitting inboxes very soon. Let me know if you’d like to be on the list to receive it
Something very exciting landed on my desk yesterday...
After over a year in the works, the long awaited Private Affairs Business Owner special is almost ready for launch!
The hard copies have landed, and the digital version will be hitting inboxes any day now.
It's a great read for business owners and their advisers (if I do say so myself).
We've got some really interesting and insightful pieces on:
- safeguarding businesses from relationships break down, with Katherine Kennedy's article looking at the impacts of divorce, and Frances Bailey focusing on cohabiting couples in business
- how to protect family businesses from 'what ifs' by Deborah Clark, which looks at wider risks, including family fall outs or disagreements about business decisions
- how to prepare your business for sale by Hollie Licence, which has useful tips whether you are planning to sell or not
- the role of businesses in the journey to net zero by Jessica Wilkes-Ball MICRS which is definitely a must read in the world we currently live in
- and of course a brilliant article on will planning for business owners by yours truly 😁
If you agree it sounds like a fantastic read, let me know and I'll send you a copy when it lands!
P.S. Thanks also goes to the others behind the scenes who have helped make this happen - Sophie Beedell Kirsty O'Keeffe Kris Arpon Catriona AttrideAndrew PlayleJohn Grundy (and many more!)
#PrivateAffairs#WealthProtection#BusinessOwners#BusinessAdviceMills & Reeve
The question being asked in pretty much every meeting at the moment - what changes can we expect in 2024 in terms of estate and succession planning? Read through Christopher Noel's thoughts on that very question here
Short article here where I attempt to gaze into the abyss and second-guess what might be hurtling towards us in 2024 in terms of estate and succession planning. I look at the big questions, like: WILL IHT BE ABOLISHED?! (probably not) and ARE LABOUR WINNING THE NEXT ELECTION WITH A MAJORITY?! (+75% chance!).
https://lnkd.in/eQqVzkBr