6 Reasons to choose an IPDI Will
How will choosing an Immediate Post Death Interest Will (IPDI) impact your client?
Let’s take a closer look at the IPDI Trusts in Wills, and how it is proven to be better for estates above the NRB.
1. Maximise Potential, Minimise IHT
Choosing an IPDI Will ensures that your client can provide for their spouse, whilst minimise inheritance tax (IHT). It’s the perfect solution for married couples with estates valued above the standard NRB (£650,000 per couple).
2. Increase Efficiency
IPDI Wills are the most flexible and efficient choice to ensure the estate is organised most effectively after death.
3. Prevented IHT on First Death
In contrast to using a Trust in a Will, whatever the estate value when choosing an IPDI Will, there is no IHT payable on first death. It also provides an opportunity to further reduce IHT on 2nd death by gifting from the IPDI.
4. RNRB Friendly*
Not only is it accommodating of the Residence Nil Rate Band (RNRB), but if required, the IPDI can create various Trusts on death, including NRB Trust, Access to RNRB, Interest in Possession Trust, Discretionary Trust, Business Trust, Vulnerable Trust and other Trusts if required.
5. Seamless Processes with the FAPT
The IPDI works really well with the Family Asset Protection Trust (FAPT), when the estate value is above the NRB.
6. Added future-proofed protection
Protect their future beneficiary’s inheritance against future financial difficulties (e.g. Bankruptcy), divorce and sideways disinheritance. It’s also worth noting that any value can go into this Trust without IHT being payable, until second death**.
Do you want to learn more?
Discover more about IPDI Wills today by getting in touch with us, or book your place on an upcoming training event.
Call: 01925 859622
* Estates over 2m will start to lose the RNRB until the estate is valued at 2.35m when the RNRB is lost
** This is different to a Discretionary Trust as you can only put the value of Nil Rate Band (NRB) into this type of Trust before Inheritance Tax (IHT) is payable. (IE: if above £325,000 before a proportion of IHT is payable at 20%) and you would also lose the Residence Nil Rate Band (RNRB) if you used a Discretionary Trust through a Will.