A Guide To INHERITANCE TAX - St James's Place

Using trusts
A suitably worded trust is the cornerstone of good IHT
planning. A trust is where an individual (the settlor)
transfers a legal obligation to a binding person (the
trustee) to deal with property in a particular way for the
benefit of one or more beneficiaries. The objectives of the
person owning the estate will dictate the type of trust
that might be used to pass on assets. However, the reasons
for setting up a trust can be greater than just IHT and
might include:
• Provision of monies for successive generations
• Preservation of monies which may be diluted due
to divorce, meeting the cost of long term care or
bankruptcy
• Income Tax and/or Capital Gains Tax (CGT)
mitigation
• Providing a gift to a child but remaining in control
of it until they are suitably responsible.
Trusts are not regulated by the Financial Services Authority.
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PARTNERS IN MANAGING YOUR WEALTH