Introduction to Trusts

Inheritance Tax can cost families thousands of pounds but there are various ways to legally avoid paying this tax. Without making suitable plans, your loved ones could face an Inheritance Tax bill of 40% on the value of everything you own above a certain threshold.

Whether you have earned your wealth, inherited it or made shrewd investments, you will want to ensure that as little of it as possible ends up in the hands of the government and that it can be enjoyed by you, your family and your intended beneficiaries.

If you pass away and do not have provision in place to preserve and protect your assets, then your family may end up spending a substantial amount of time and money battling over your wealth.

It might be appropriate to leave some of your estate in trust. The type of trust to use – and even whether a trust is appropriate – will depend on your circumstances. Trusts may be used to ensure family assets are protected in the event of divorce or bankruptcy.

A trust may also be useful to ensure younger beneficiaries do not receive money or assets whilst they are too young to manage them. There may also be Inheritance Tax benefits from leaving assets in trust.

Whatever your reason for considering a trust in your Will, you should seek professional financial advice to ensure it is correctly established.