Trust Work &
Inheritance Tax

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"To make a no-obligation appointment with one of our experts, call the head office on 01843 269165."

Trust Work

There is a common misconception that trusts, and the use of trusts, are solely for the very wealthy. However the reality is that trusts are available and accessible to all people and should be considered by all families!

A trust can be employed to ensure that assets move through and between different generations of a family, protecting against children’s divorces (or financial difficulties, for example bankruptcy), from unnecessary taxes or from unexpected changes in family circumstances.

A trust can also be used to help with protection against assets being unnecessarily taken to pay for care fees.

Trusts can help realise and pay-out assets on death, without the possible delays otherwise created by the probate process.

They can be used to help with an efficient gifting of funds from grandparents or parents to help future generation’s university fees, or to support a property purchase.

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Inheritance Tax

Inheritance tax (IHT) is a tax on money or possessions you leave behind when you die, and on some gifts you make during your lifetime. Your estate includes your property, savings, and any other assets you pass on after debts and funeral expenses have been paid.

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Our range of services include

  • Will Trusts

  • Discretionary Will Trusts

  • Flexible 2 Year IHT and Loan Trusts

  • Flexible Life Interest Trust

  • Property Protective Trust

  • Family Settlement Asset Trust

  • Disabled Discretionary Trust

  • Business Trusts & Legacies

  • Probate

  • Plus many more

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Giving a gift?

Money given away before you die is still usually counted as part of your estate.

So people you give gifts to will be charged inheritance tax (at a max of 40%) if you give away more than £325,000 in the 7 years before your death - so early planning of how to pass on your assets is important. If you make large lifetime gifts, the beneficiaries could take out life insurance against the potential inheritance tax bill. Most gifts into trust are now subject to inheritance tax even if made during your lifetime, but this is an area where you would need specialist advice from our team.

Rob Collison, Owner

British Pound Notes

How Much Tax Will I Pay?

The standard Inheritance Tax rate is 40%. It's only charged on the part of your estate that's above the threshold. Example Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000)

January 2022
Inheritance
Tax Changes

In March 2021, the government announced changes in IHT which will become effective from January 2022.

The unpopular tax is not being abolished, but the changes will make it much easier for estates that are both under and over the IHT threshold.

Get in touch with us to find out how these changes may affect your IHT