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Limited Price Indexation

A requirement to increase certain pensions in payment (benefits accrued for service after 5 April 1997) by 5% (up to 5 April 2005) and 2.5% (after 5 April 2005).

LA

Lifetime Allowance

LPI

Limited Price Indexation

LEL

Lower Earnings Limit

Lower Earnings Limit

The minimum amount of earnings before NI contributions become payable. The LEL is roughly the same as the basic state pension for a single person.

Lifetime Allowance

The overall cap set by HMRC under the FA04 regime on the amount of a member's tax privileged savings.

Legacy

A gift (usually of cash) in a will.

Letters of Administration

The procedure whereby the court appoints administrators to administer the deceased’s estate, when there is no valid will.

Letters of Administration with will annexed

The procedure whereby the court appoints administrators to administer the deceased’s estate where there is a valid will but the named executors are unable to act.

Letter of wishes

A non-binding and usually private letter from the settlor of a trust to the trustees explaining how the settlor would like the trustees to exercise their powers in favour of the beneficiaries.

Life interest trust

The classic form of IIP trust: a trust in favour of a particular beneficiary for his/her lifetime, giving that beneficiary an automatic right to the income of the trust. The value of the trust was aggregated with the beneficiary’s personal assets to calculate the IHT due when the beneficiary died. This treatment ceased after FA 2006, except for pre-existing life interest trusts.

Articles

RIP Trusts? Long Live Family Partnerships?

It seems that trusts are viewed currently as the source of all tax-planning evil. A series of legislative changes have made trusts extremely unattractive for wealthy UK clients. This article summarises the current status of trusts in UK tax planning before reviewing the proposed alternative of family partnerships. To what extent can partnerships be used to replicate trust planning?

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