Inheritance Tax and Trusts

In its simplest form, a trust is an instruction to someone else to hold your property for the benefit of a third party. This can be made subject to conditions or more detailed instructions as to who is to benefit. The person holding your property – the “trustee” – might even be given the right to decide who is to benefit, choosing from a group of people you have described.

Trusts can be as flexible as you wish, and are often set up in a Will to benefit a young person who may not have proved that he or she can responsibly manage a large sum of money. In certain cases the law insists that a trust is established, for example if funds have to be held for someone who is mentally incapable of looking after his or her own affairs.

No-one wants to leave their money and property to the tax man. It is sometimes possible to reduce the potential burden of inheritance tax through the use of a trust, although the law is constantly evolving on this topic. Great care needs to be taken, especially when contemplating any tax planning with the family home.

Tax is becoming ever more complex and it is more important than ever that proper advice is taken before making any major commitments or decisions.


You can just discuss with us your aims and we can advise you how best to achieve them. We are not authorised to advise you on insurance or pension products, but we are happy to work with your existing financial advisors to ensure that the legal requirements are covered.

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Sarah Barrett
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Steven Clews
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Stephanie Czoboriek
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Angela Clements
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