Lifetime trusts are a useful way of reducing the Inheritance Tax on your death. Although tax rules since 2006 have made trusts less tax efficient by levying ongoing Inheritance Tax charges, these can be avoided by limiting the trust assets to the nil rate band. Therefore, provided you survive 7 years, the trust fund falls outside of your estate for Inheritance Tax purposes.
Trusts are also useful (within your Will or created in lifetime) way of 'estate planning', ensuring that minor beneficiaries, disabled beneficiaries and other vulnerable beneficiaries are provided for through the safety of a trust structure managed by chosen trustees.
For further information, please contact Katherine Carroll on 020 8974 7490 or kc@roselegal.co.uk.
