Surrey-based tax specialist Nicholas Acomb has helped launch a Scottish Amicable insurance policy designed to help parents pass on assets to children while providing for the growing need for expensive nursing home care.
Acomb, partner with Guildford and Farnham-based firm Stevens & Bolton, says people are increasingly hesitant to transfer assets to children because of fears over possible long-term nursing costs.
"It is important that solicitors know there is a product on the market dealing with nursing home care where it is a problem, when people are trying to give away assets in a tax efficient way," says Acomb.
"It is important then that they also get independent financial advice."
The policy uses a split benefit trust to create a tax-efficient way of providing for nursing home care and reducing inheritance tax bills on a person's estate. "It gets around the 'gifts with reservation of benefits' problem which occurs with inheritance tax legislation," says Acomb.
"A need was identified [by Scottish Amicable] to remove parents and children's worry of planning for future care and also reducing the impact of inheritance tax on death. We provided the legal input for a product that would satisfy this need."