Peter Rayney explains why family investment companies should now be seriously considered as part of an estate planning exercise.
Over the last decade or so, UK trusts have lost some of their sparkle. They were hit hard by the Finance Act 2006 changes and have also been subject to increased regulatory obligations.
This perhaps explains why many families are switching to family investment companies (FICs) as the bedrock for their estate and succession planning.
The main challenge for many families is to reduce their overall inheritance tax (IHT) burden whilst retaining a degree of control over their assets.
Initial considerations
With care, it should be possible to establish a FIC without any immediate tax charges (although some tax may arise where
