With more and more estates getting caught up in the IHT threshold of £325,000, which has been frozen until April 2028, IHT planning has never been so important.

How can IHT investing benefit later life clients?

An IHT investment portfolio can be particularly useful for structuring the financial plans of later life clients. By using an IHT investment service, you can help your elderly clients who are looking to:

Pass on an inheritance: The most obvious benefit of IHT investing is that it enables clients who have invested for over two years to pass on their wealth without paying IHT. This can provide later life clients with the reassurance that they are leaving a greater legacy for their children.

Invest in tax-efficient wrappers: Clients can hold AIM IHT assets within an ISA wrapper, in which no CGT or income tax is payable. ISA wrappers also enable later life clients to benefit from the additional permitted subscription (APS) and transfer the relevant allowance to a surviving spouse on death.

Harness potential for growth: The AIM index has become attractive to a wide range of companies at different stages of their development from start-ups to more established businesses. Investing in AIM gives your clients the opportunity to take advantage of a dynamic market of growing businesses, and to continue to grow their assets during retirement.

Navigate powers of attorney: For clients who have a power of attorney in place, estate planning options can often be limited – but IHT portfolios present a potential solution, as the assets stay in the donor’s name.

Withdraw assets when necessary: In later life, clients’ circumstances can change unexpectedly, and at short notice. The structure of an IHT investment portfolio can allow clients to draw their money at any time if they need to access it.

In short, IHT investing gives your older clients the opportunity to invest and grow their assets in a dynamic market whilst reducing potential IHT liability, retaining full control of their assets, and retaining the ability to liquidate their portfolio at any time if their circumstances change.

IHT investing for older clients with CGWM

Canaccord Genuity Wealth Management (CGWM) has been running AIM IHT portfolios since 2005, with IHT investments making up a significant proportion of the company’s AUM of £32.5bn (as at 30 June 2023). Our experienced IHT team has over 50 years’ combined experience in helping later life clients use IHT investing to achieve their financial goals.

We are delighted to be launching our IHT service on the Fidelity platform. Our IHT Portfolio Service via Fidelity offers a cost-effective choice for your later life clients, with:

• A strong track record of outperforming the AIM and FTSE All-Share indices since inception
• One of the most competitive pricing structures available
• Third-party reviews by MICAP and MJ Hudson.

CGWM is proud to be a strategic partner of the Society of Later Life Advisers (SOLLA), a not-for-profit organisation dedicated to raising standards and helping older people to access fully regulated financial advice. This partnership demonstrates our commitment to supporting financial advisers in providing the best possible services for older clients.

Natalie Howard
Investment Manager, Canaccord Genuity Wealth Management

Disclaimers:

Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.

The IHT service should be regarded as high risk as it is exclusively focused on equities. The portfolios are wholly invested in small capitalisation stocks. These companies are therefore more volatile and whilst they offer great potential, growth is not guaranteed. It is important to note that this should be seen as a long-term investment.

The current inheritance tax rules and tax treatment of AIM shares may change in the future. We strongly recommend that clients discuss their financial arrangements with their tax adviser before investing, as the value of any tax reliefs available is subject to individual circumstances.