This article is for professional investors only, and not intended for retail investors.
Did you know the market for Inheritance Tax “IHT” planning solutions has changed?
New Business Relief (BR)-qualifying services are more effective at mitigating the effects of IHT. This means firms need to update their research and product panels to avoid taking risks that are now avoidable.
As you likely know, the market for BR-qualifying services has traditionally been homogeneous, with planning success contingent upon investors surviving two years or paying for additional insurance cover, which could be as much as 13% of the capital invested. That was then, but now things have changed with the launch of IEP Apex. This new BR-qualifying service fully mitigates the effects of IHT by incorporating complimentary IHT cover for the initial 2-year qualifying period, paid for by the Manager.
Does your research and due diligence focus on what matters the most?
In light of the new Consumer Duty rules and the renewed focus on good outcomes, research and due diligence should also focus on outcomes first. Here are three considerations to be made when selecting BR solutions moving forwards;
If the client is looking to fully mitigate the effects of IHT, will the solution achieve that in all cases?
If a solution is contingent on the client surviving two years, how can you demonstrate that you have avoided foreseeable harm?
Would you be able to demonstrate that the third-party review service you use have considered all of market, as currently not all of them do?