Inheritance Tax Planning

Inheritance Tax and Trusts

You may or may not have heard about trusts but it has to be said they are a very good way of distributing money or assets in accordance with your wishes.

They are extremely effective and can also be very complicated.

A trust is essentially a vehicle designed to distribute money or assets at a specific time in the future. They can also be used to control how money is retained and invested and the uses that the money can be put to. They can not only control the ultimate payout but also any regular distribution of profits within them.

The one most important thing about trusts especially when talking about inheritance tax is they CAN fall completely outside your estate and therefore CAN be free of inheritance tax altogether. We say "can" because some trusts can become "Potentially Exempt Transfers" and therefore are subject to the 7 year rule for PETs.

If you do want to set up a trust we have specialist legal advisors available who can discuss all the pros and cons of particular trust that my be suitable for you.