Over the last two weeks we have been highlighting IHT, this week continuing the theme we look at trusts.
Trusts can be very useful for IHT planning when you want to give away wealth but prefer to keep some control over it. These are not just effective for the very wealthy but can be used in a variety of different situations.
Very broadly, gifts are made to a small group of people (trustees) for the benefit of others (beneficiaries). The details are set out in a document (trust deed) and the gifts made become the trust funds. You can be included as a trustee, and you can set the beneficiaries to suit your circumstances.
In more recent years some of the tax advantages to using trusts have been removed, however when used correctly trusts can provide an effective shelter for family wealth and help to prevent it getting fragmented, e.g. by divorces and second marriages.
There are lots of things to think about when setting up a trust, including tax, and so it is very important to make sure that you take proper advice.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.