Inheritance tax (IHT) has become an increasingly important tax as it applies to the estates of more and more people in the UK. Even for British expatriates, living offshore doesn’t mean you are exempt – if the UK remains your domicile (which is the case for the vast majority of people from the UK) then your worldwide assets are subject to IHT.

Trusts cannot be ignored as they are a fundamental part of succession planning. They can help to reduce an IHT liability allowing your beneficiaries to benefit from more of your estate. The tax treatment of a trust at inception, during the term of the trust and upon distribution of any funds will depend on the type of trust used.

Trusts can be an important tool in preparing your estate for IHT mitigation. But they are also useful for people who want to maintain complete confidentiality over the split of assets between beneficiaries. A trust can also be used to impose certain conditions in order for the beneficiary to inherit, giving the settlor an element of control from beyond the grave.

There is no ‘one size fits all’ solution to IHT and succession planning and the solutions that work for one person may not necessarily work for another. PWS Group advisers work alongside you to offer solutions that are specifically tailored to your needs.

For further information, please contact us.