When making a Will, tax planning always needs to be taken into account. It is sensible to review your financial position on a regular basis so that any tax saving schemes can be considered. When thinking about Wills, the tax advantages of making lifetime gifts to family members or others can be discussed.
We can advise on gifts and other tax planning and tax saving opportunities (including trusts). We focus on preserving and enhancing clients’ assets by advising on tax and succession planning. This may include transferring assets from one generation to another in a structured way to minimise tax liability and other problems.
Trusts are traditionally used to avoid or solve problems in two main areas; taxation and family matters. A trust is a formal transfer of assets e.g. property, shares, or money to a small group of people or to a trust company (trustees) on the basis that the assets are held by the trustees for the benefit of others.
To save tax, assets which you no longer need can be put into a trust to reduce your wealth and minimise inheritance tax on your death. Assets can also be placed in trust to prevent children of your relatives receiving or inheriting too much wealth too early in their lives or at an inappropriate time.
You may wish to give a life interest to a family member or a dependent person rather than making a gift of assets to them outright. A trust can deal with this type of situation and it means that, upon the death of a lifetime beneficiary, the asset can return to you or pass to your family.