Trusts & Succession Planning

A key financial objective of most families is to protect the economic value of everything they have worked very hard for over many years to build and therefore from exposure to inheritance tax (IHT). IHT can be particularly punitive as it applies to all personally owned UK assets, regardless of the fact the owner may never have lived in the UK. Non-resident individuals, therefore, need to take particular care in structuring investments in UK assets.

We have many years of experience in giving clients bespoke advice that secures their succession plans and helps them make use of the IHT allowances and reliefs which are available to them.

The complexities of the UK tax system in relation to IHT (and the use of trusts) means it is essential that appropriate professional advice is taken to avoid any unexpected and unwelcome tax consequences for the next generation.

Particular tax efficiency can be achieved in relation to assets which are not required as a source of income or capital in a person’s lifetime. Trusts, particularly those administered offshore, can be used as a means of passing on wealth to future generations without incurring inheritance tax or, in significantly reducing the amount of IHT payable and can also be used in appropriate cases as a tax efficient vehicle for holding investments.

Another common use of trusts is to provide a tax efficient source of discretionary income or other benefits for family members.

Offshore trusts can also be used to defer capital gains tax in certain circumstances.

If you would like to meet with us to discuss the use of trusts and/or succession planning, on a free and confidential basis please contact us.