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