The benefits of using a Trusts include
- To protect assets for future beneficiaries and provide security for their inheritance.
- To save on inheritance tax and on other related taxes where appropriate.
- To ensure that wealth can cascade down through the generations free of IHT for at least 125 years and maybe even in perpetuity.
- If your assets are worth more than the NIL rate band, (single life £325,000, married couple/civil partner £650,000) as anything above that is liable to inheritance tax at 40%.
Why use Trusts to protect wealth – very important questions to ask yourself
Any benefits could be liable to Inheritance Tax (IHT) at a rate of 40% or claimed by an unintended beneficiary such as a new spouse not children
Any benefits could be liable to Inheritance Tax (IHT) at a rate of 40% or claimed by an unintended beneficiary such as a new spouse not children.
The gift could be lost if your child were to divorce, separate or become bankrupt and IHT could become payable when your child passes the gift to their child
Your estate could become liable to IHT and those inheriting could lose the inheritance in event of divorce or separation.
Your children's inheritance could be a risk from their bankruptcy, divorce or separation.
If not assigned to lender proceeds can be claimed by other creditors, a new spouse or liable to IHT.
Bond value within estate and potentially liable to IHT.
Any benefits could be liable to Inheritance Tax (IHT) at a rate of 40% or claimed by an unintended beneficiary such as a new spouse not children