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IHT relief, plus making things ‘safe’ for next generationmay i ask for what purpose?
Just asking the question, thinking about future, had some good answers already.Just proves you don't trust your kids.
You raised them. Trust them?
A trust is like a marriage. Easy to get into with the best intentions but difficult to get out of cleanly.
I think there are different types of trusts for different objectives, dad set up a lifetime?? trust to protect him from IHT, after he died the trust was dissolvedTrusts are often set up by bitter old folks who don't much like, or trust their heirs to make their own decisions. It is sometimes seen as a means to rule from beyond the grave.
Bear in mind trusts will pay enhanced CGT rates on property disposals, Income Tax on earnings of 45%, annual accounting fees, and you have to settle IHT every 10 years on the enhanced value of the trust.
Don't they just....Too many people want to influence the way the assets are managed long after they are gone.
Re-assess any Will or Trusts at least every 5 years and after any changes in circumstances, say marriage or deaths...Often you try and do something to keep all happy and turns out to be the complete opposite possibly.
Also what's good today can be terrible tommorrow.
HMRC rules change along with people's views and ideas.
A "trust" set up by a relative who's marriage ended in divorce, and the first we knew of the trust was a solicitor's letter, cost us ALOT of money, make sure you get very good advice , I won't ever go near one again ! See your accountant and solicitor and make plans with there help, a little bit extra spent now can be worthwhile in the long run !Driven by tax planning, they can be a very good tool, advise it in the right situation.
Driven by asset protection, they often cause toxic feelings and family fallout.
It's the motive not the tool.