A trust can be used to achieve many things. They can be created during lifetime or on your death by the terms of your will.
Will trusts are commonly used for:
- Effective Inheritance Tax planning
- Effective distribution, control and protection of family wealth
- Providing limited gifts (such as an income for life) or conditional gifts (such as making a gift at a particular age)
- Protecting property from care home fees
A trust doesn’t have to be complicated or expensive to operate. You choose who the Trustees will be and you will guide them using a letter of wishes. Our experts are on hand to help with this as well.
Do I need inheritance tax planning?
If your total wealth exceeds £325k (and this could include life insurance that pays out to your estate on your death) then you may have an Inheritance Tax issue that needs reviewing.
The current rate of IHT is 40%, meaning 40p of every £1 over your available allowance (£325k) is taken in tax.
There are simple and effective ways of reducing or entirely removing an IHT liability and we can help you identify your options with a comprehensive review.