This article provides an introduction to family philanthropy, outlining the key issues that need to be considered in order to ensure a successful charitable project. These include charitable themes, funding, ways of operating, jurisdiction, the role of the family and ethical issues.
If, for whatever reason, a trust or a simple outright gift to children is inappropriate, what are the alternatives? Some years ago, much was made of so-called 'family limited partnerships' and while they remain the right vehicle for some, they are appropriate only for those with at least £10 million to spare because of the financial regulations to which they are subject. Enter the family investment company.
Making a will is a vital part of any estate planning exercise. Sharing wealth with family and other loved ones in the most tax-efficient way possible is a priority for most people. Their aim is to provide for partners and ensure that children are supported financially to achieve their goals, whether those include buying a property or starting a family or business. Given this strong desire to share their wealth, it is concerning that nearly two-thirds of adults in the United Kingdom do not have a valid will in place.
Unmarried, cohabiting couples are the fastest-growing type of family, with an increase of more than 25% in the past decade. As house prices continue to rise faster than average incomes, many young people are turning to the 'bank of mum and dad' to help with their first property purchase. While such scenarios are increasingly common, they give rise to a number of legal issues.
Governments recognise that encouraging people to start businesses and employ others is important for the economy, and that any charge to tax on disposal should be mitigated to recognise the years of work involved in building a business and the financial risk that people take in doing so. This was the principle behind business asset disposal relief when it was introduced in 2008 to replace the earlier business asset taper relief.