Can Trusts be used to mitigate Inheritance Tax?
You may decide to use a Trust to pass assets to beneficiaries, particularly those who aren’t immediately able to look after their own affairs. Transfers of assets into certain Trusts are subject to an immediate Tax charge if they exceed the Inheritance Tax nil rate band (taking into account the previous 7 years’ chargeable gifts and transfers). If you do use a Trust to give something away this removes it from your estate, provided you don’t use it or get any benefit from it. But, bear in mind that gifts into trust may be liable to IHT. Trusts are complicated and it’s best to get specialist professional advice.
