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Inheritance tax planning & gifting by the Deputy

We work closely with families and their other advisors to help consider when inheritance tax planning and gifting by the Deputy is appropriate and advantageous.

There are a lot of myths about gifting and tax planning, which often lead to a Deputy overstepping their authority.  Before considering making gifts or tax planning we recommend that you fully understand what you can or cannot do, so you can be sure that what you propose will be effective and will not result in you incurring personal liability.

It is important, as a starting point, to be aware that whilst the Court of Protection is likely to sanction proper inheritance tax planning, an ill founded application could cost the incapacitated person a significant sum with no benefit being achieved.

The affairs of everyone are different but the Court of Protection will be most mindful to protect the best interests of the incapacitated party and will apply a number of principles to consider if inheritance tax planning or gifting are appropriate.

We can advise on the likelihood of making a successful application to the Court of Protection.  We can also assist with making the application and advise on the process and the other parties who may be involved.   For example, the Court of Protection is likely to ask the Official Solicitor to represent the incapacitated person, even though you may be the Deputy.