Case study
Elizabeth
UK INHERITANCE TAX | FINANCIAL ADVICE
Elizabeth, moved to Cyprus over 30 years ago when she married her Cypriot husband.
She maintained ties with the UK, owning a property there and kept her bank account open into which her rental income was paid. She also held some investment funds in the UK.
The problem
To try to establish a change of domicile from the UK to Cyprus and therefore minimise the exposure of her estate to UK inheritance tax, her tax adviser recommended cutting ties with the UK. She sold her property and has now been informed that her bank is closing her account due to Brexit.
The solution
As an existing medical insurance client of 3D Global, it was a natural progression for Elizabeth to speak to an investment advisor to assess the options open to her in relation to her funds and the bank account which held a significant balance after the sale of her property. After a full analysis of her financial position Elizabeth was assisted in opening a new bank account in the Isle of Man and an investment account was set up into which her mutual funds were invested. The balance of her bank deposit was placed into an investment held in trust in favour of her granddaughters.
The outcome
The result of this process is that Elizabeth has effectively cut all ties with the UK, therefore her estate should not be subject to UK inheritance tax. The majority of her capital is now working for her, providing a return in excess of inflation and the funds invested for her granddaughters will be available to them when they turn 18 – exactly what Elizabeth wanted.
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