One way of preserving assets within a family over several generations is by the use of trusts. Although trust laws have been limited since 2006, there are still ways for families to use trusts to help plan with and protect their assets.
By creating a trust you can give assets away but retain flexibility over who will benefit from them and when. A trust allows your estate to be protected from children who are not yet financially responsible, from a fragile marriage or from uncertain financial circumstances.
If inheritance tax may be an issue for your family, it can be reduced; if not completely then often substantially, by making use of:
- Personal gift exemptions
- Gifts of income (rather than capital) so long as these do not leave you short of income to maintain your standard of living
- Planning, where possible with death benefits (either from employment or life assurance policies) and placing these into trust
Some types of property including certain business assets (such as shares in a family partnership or company) and agricultural property can be passed on free from inheritance tax, or at a discounted value for inheritance tax purposes. This can be done while you’re still alive or through your will.
Contact us for help
For personal tax advice from the experienced team of trust solicitors at Lupton Fawcett, call our Leeds, Sheffield or York office using the numbers above. We can assist with personal tax or trust planning, and can advise you to ensure your assets are working to full capacity to benefit you and your family.