There have been a number of articles in the press recently about the use of trusts in order to minimise Inheritance Tax (IHT) liabilities. The structuring of trusts is a legitimate part of financial planning that anyone can use, not just the super wealthy.
Whilst trusts do have a place in the overall planning of a high net worth individual, they must be considered in the fullness of the overall assets of the individual. Trusts can be used to pass assets down generations in a tax efficient way, but you must always consider the costs of administering them, or of keeping voting rights, where the beneficiary may be too young to make such decisions. Always talk to a professional in this area, as there are a number of taxes that need to be considered.
IHT can be mitigated by forward planning and our Beavis Morgan tax experts are available to guide you and advise you on the available strategies. If you would like to know more, please contact Barrie Dunning or your usual Beavis Morgan Partner.