Family Investment Companies vs Trusts – choosing your best option

For every business owner and entrepreneur, there will come a time to start thinking about how your assets and wealth can be passed effectively to future generations. An effective investment structure can help you achieve this and secure your legacy.

Family Investment Companies (FICs) and Trusts are two different types of investment structures that facilitate the accumulation and transfer of wealth, in a tax efficient manner.

FICs have become popular due to the tax benefits they provide which can create significant savings. However, they will not be suitable for all families and can become tax inefficient in some circumstances.

How do you decide which type of investment structure is best for your circumstances?

In this webinar, our tax and financial planning experts explain how FICs are structured, their benefits and disadvantages, and how and why Trusts can provide an alternative for effective wealth transfer and succession planning.

Key points in this webinar:

• What is an FIC and how is it structured
• Benefits and disadvantages of an FIC
• Your options if you already have an FIC set up
• Trusts as an alternative to FICs – differences and benefits
• The right type of Trust for your circumstances
• Tax benefits of FICs & Trusts

Speakers

• Patrick King – Tax Partner, MHA
• James Kipping – Tax Partner, MHA
• Marcus Bull – DipPFS, Independent Financial Advisor, MHA Caves Wealth

Risk Warnings / Important information you should read:

MHA Caves Wealth is authorised and regulated by the Financial Conduct Authority (FCA), Financial Services Register number 143715 and is a legally independent financial service and wealth management business who alone takes full responsibility for the advice they provide. Information and comment provided by MHA Caves Wealth on this website is generic in nature and should not be construed as personal financial advice.

This communication is for general information only and is not intended to be individual investment advice, recommendation, tax or legal advice. The views expressed in this article are those of MHA Caves Wealth or its staff and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. In particular, the information provided will not address your personal circumstances, objectives, and attitude towards risk. Therefore, you are recommended to seek professional regulated advice before taking any action.

Tax, Trusts, and Estate Planning Services are not regulated by the Financial Conduct Authority.

Key Risks: Capital at risk. Past performance is not a guide to future performance. The value of an investment and the income generated from it can go down as well as up, and is not guaranteed, therefore you may not get back the amount originally invested.

Investment markets and conditions can change rapidly. Investments should always be considered long term.

This Information represents our understanding of current law and HM Revenue & Customs practice as of May 2023. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change.