Trusts can be useful as a way of reducing Inheritance Tax, providing for your children and spouse, and potentially protecting family businesses.
Trusts allow you to control who benefits and in what way, sometimes long after the donor’s death.
If your house value and combined assets are past the Inheritance Tax Allowance threshold then you can expect your estate to pay hefty tax, currently 40%!
A Trust has ‘trustees’ and they act as gatekeepers to the contents of the Trust making sure the assets are used as you have instructed. Trusts are a great way to protect assets and beneficiaries from future unforeseen issues.
Remember, if you put something in a trust (house, money, insurance policies, possessions) you no longer own them…the Trust owns them and manages them on your behalf as per your wishes. This arrangement ring-fences your assets and keeps them safe for future use. Currently, trusts last 125 years, so they are a wonderful vehicle to use in order to organise family assets and future generation’s security.
Look here for more information and guidance on family trusts.