Home > Projects > Deceased Estate > Restructuring of an Estate

The Problem

We have recently been engaged by the Executors of a deceased individual’s estate.

Much of the individual’s wealth was held in a property company, and therefore the shares in that company generated a significant Inheritance Tax Liability.

The Solution

We advised the Executors on how to restructure the estate so that they have a cash redeemable asset secured to the assets of the company, which can be drawn down from the company over a period to meet the Inheritance Tax Instalments as they fall due.

This was important for the Executors of the estate as it is in effect their personal responsibility to ensure that the liabilities of the estate are met out of the assets.

The Result

The restructuring also allowed the executors to access the capital gains uplift in the base cost of the property company shares on death, in order to mitigate tax in obtaining money from the company to pay their liabilities. Clearance was obtained from HMRC in this regard.