APR/BPR Planning by Will

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This talk will explore key planning considerations for Agricultural Property Relief (APR) and Business Property Relief (BPR), including the main structuring options for farms and businesses, common issues that arise when allocating reliefs in wills, and how discretionary trusts can be used as part of the planning approach in higher-value estates.

• Planning options for farms and businesses valued at up to £2.5m, and those exceeding this threshold
• Illustration of the three main options:
  • Leaving assets to the surviving spouse (either outright or via an IPDI trust)
  • Leaving assets directly to children
  • Leaving assets to children via a discretionary trust (D/T)
• Issues with will provisions referring to “my fully relievable property” and “my partially relievable property”, including:
  • The difficulty that the 100% allowance cannot be allocated to a specific gift if that is the ultimate outcome of the flexible beneficiary structure
  • The risk of relief being lost due to the “spread rule” in s.39A
• Planning using discretionary trusts, including the use of s.144 to ensure the appropriate amount remains in the discretionary trust, with the residue passing to an IPDI trust or outright to the surviving spouse
• Returning to discretionary trusts as a planning solution, but only as a starting point in higher-value estates

Simon Douglas, Barrister, 5 Stone Buildings