As more people are faced with the grim spectre of a 40 per cent IHT hit, The WAY Duo Inheritor Plan provides a viable alternative to traditional schemes.

WAY Group chairman and technical director Paul Wilcox explains: ‘Duo is a unique offering combining features of discounted and flexible IHT schemes. Our product delivers a discount on the gift into trust, but – in contrast to a discounted gift plan where funds are locked in – also offers significant flexibility over 60 per cent of the amount gifted.’

With capital gains tax due to change to an 18 per cent flat rate from April 2008, the plan offers investors a tax-efficient IHT planning vehicle because it is linked to a straightforward unit trust/OEIC and not a bond

The discounted gift is created by regular monthly payments for the first eight years, in the form of fixed reversions. These are automatic monthly bank credits generated from the sale of original gifted units/shares totalling five per cent annually.

Wilcox adds, ‘Superior flexibility over traditional discounted gift planning is achieved by flexible, deferrable annual reversions for the first four years combined with fixed monthly ‘income’ drawings over the first eight years – likely to rise over the years to reflect underlying fund performance – paid directly into the donor’s bank account.’

For further information about WAY Group products and services please call 01202 890895, or visit www.WAYinvestments.co.uk