How do I gift an Investment Bond (Onshore or Offshore) to the client's children?

There is, presently, no way to gift a bond within the software without first liquidating it, then gifting the proceeds. This is something that is on our developers list of things to look into adding to the software.

The specific steps of the work-around are as follows:

1. In the Investment screen, use the events (as shown in the small Time panel) to schedule the liquidation of the bond.
2. Identify (from the Let's See screen > Detailed Info panel) the value of the sale proceeds.
3. In the Expenses > Legacy screen, schedule a one-off gift, for the value of the proceeds (using the same event as used for the sale of the bond) - this is the simplest way to input PETs into the software.

Note: For the Legacy expense, under Advanced Settings > Inflation, one will want to select 'Future Value', or set inflation to 0%, to ensure the intended gift amount does not get inflated.

Unfortunately, this could result in a tax charge arising as the software will treat the liquidation of the bond as a chargeable event, since the software does not have the capacity to recognise the gift and not apply the tax, as we know is what would happen in real life with an assignment of a bond. Of course, whether a tax liability arises as a result of the chargeable event calculation will depend on the value of the bond, and the client's tax position at the time of the gift. If you would like us to take a look at a specific client plan, then please contact Support and we'll be happy to do so.