A FIC is a private limited company established to hold and manage family wealth and investments. It provides a tax-efficient structure for succession planning, and asset protection across generations. FICs are usually set up with cash or a loan to the FIC. It is usually used as an alternative structure to trusts.
Generally, to reduce the estate of the person creating the FIC, known as the founder. A FIC is essentially an investment company that allows wealth to accumulate in a tax efficient and controlled way, often with the founder having the majority of the voting shares.
Depending on the amount put into trust, it triggers an immediate charge to IHT whereas, done correctly, a transfer to a FIC will not. The rates of tax are generally more favourable to FICs than trusts (at the time of writing and subject to any Government changes to tax reigmes).
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