When making provisions for loved ones in the event of your death, the threat of inheritance tax can feel like a waste of your hard-earned assets. There are, however, a range of options available to reduce the inheritance tax figure that will be owed on your estate.

One such option is to include trust provisions within your will. These can be helpful not only from a taxation perspective, but also in safeguarding your assets for future generations. They can be used to:

Ring-fence assets that might otherwise be taken into account when assessing your surviving spouse’s liability towards the cost of nursing care in later life
Protect beneficiaries who are too young to manage large sums of money responsibly
Offer peace of mind if you’re concerned about future divorce or bankruptcy of a beneficiary, or the possibility of third party claims
Give flexibility for your trustees to respond to future changes in the circumstances of your beneficiaries

If you are looking to reduce the inheritance tax burden on your estate, we can help you understand your options, which may include:

The creation of lifetime trusts
Taking advantage of Inheritance Tax reliefs such as those on business and agricultural property
Regular Gifting of Surplus Income
Deeds of Variation/Disclaimer
Protection from death benefits through the use of life insurance, pension plans and death in service plans
Cross option agreements supported by life insurance and trust provisions

If you would like to discuss your options in relation to trusts and lifetime tax planning contact Star Legal today.