Family Investment Company in Estate Planning: The Smart Alternative to Trusts?

OBJECTIVES

• Understand the fundamentals of family investment companies (FICs) and their evolution as an established estate planning tool
• Evaluate when FICs are appropriate for clients compared to alternative structures such as trusts
• Design effective FIC structures including share capital arrangements that balance control, income, and growth considerations as well as funding requirements.
• Navigate the technical requirements for establishing new FICs or converting existing companies

KEY TOPICS

Structural Design and Implementation

• Different FIC models and architectural approaches
• Share capital design: alphabet shares, growth shares, and income shares
• Balancing control with estate planning benefits
• Governance frameworks and decision-making

Tax Treatment and Planning

• Inheritance tax implications and exemptions
• Capital gains tax on formation and ongoing management
• Income tax considerations for dividends and distributions
• Corporation tax treatment
• Anti-avoidance rules: settlements legislation, pre-owned assets tax (POAT), and other pitfalls

Integration with Trusts and Other Structures

• Using trusts as FIC shareholders
• Combining FICs with discretionary trusts
• Loan trusts and FIC arrangements
• Succession planning across multiple generations

Control, Governance and Protection

• Maintaining parental control while achieving tax benefits
• Protecting against divorce, creditors, and family disputes

Practical Considerations and Case Studies

• Real-world examples of successful FIC implementations
• Common mistakes and how to avoid them
• Ongoing administration and compliance requirements
• Exit strategies and unwinding FICs when circumstances change

WHO SHOULD ATTEND

Partners and managers seeking to understand how FICs can be used in estate planning. This course is an introductory course into FICs highlighting key tax anti-avoidance. Some prior knowledge is assumed.