Trusts have been used for centuries to hold and protect assets for the benefit of future generations. However, there are circumstances where trusts are not suitable - for example, where settling a trust would give rise to significant upfront and ongoing inheritance tax liabilities or where the wealth-holder wants to reserve a greater degree of control over the assets than a traditional trust may allow. In such circumstances, alternative options such as a family investment company and/or a family limited partnership may be more suitable.
But, many of the same competing priorities apply, such as the retention of control, asset protection, tax, wealth preservation, family governance and nuptial risk. How do you manage these complex issues in the context of a family investment company or family limited partnership?
In the first session of our new Private Perspectives On Call digital series, Lydia Kellett and David Whittaker will be joined by Daniel Channing from Whitmill Trust to explore what happens when a UK-resident, UK-domiciled individual wishes to transfer a portfolio of income-producing assets while retaining control and ensuring financial security for their spouse.
Using this real-world scenario, we will discuss why a family investment company or family limited partnership may be the preferred solution, how the structure can be tailored to meet a family's objectives, and the key legal, tax and practical considerations that can inform its design.