Inheritance Tax and "Tennants in Common"

John_Pierpoint

Why would you want to deprive your partner of your share of the joint estate's capital during their lifetime?

Why would you want to deprive your partner of your share of the joint estate's income during their lifetime?

Why would you want to give £300,000++ to a "discretionary trust" for your children, rather than divying it up amongst them when you die ?

Are you really trying to leave this money to the grandchildren? great grandchildren? great great grandchildren?

How do you visualise the trust being managed and administered?

How do you visualise this trust coming to an end?

spud312r

John_Pierpoint wrote: »

Why would you want to deprive your partner of your share of the joint estate's capital during their lifetime?

Why would you want to deprive your partner of your share of the joint estate's income during their lifetime?

Why would you want to give £300,000++ to a "discretionary trust" for your children, rather than divying it up amongst them when you die ?

Are you really trying to leave this money to the grandchildren? great grandchildren? great great grandchildren?

How do you visualise the trust being managed and administered?

How do you visualise this trust coming to an end?

Valid questions.. that we have to be able to answer..

kidmugsy

Discretionary trusts are not only about IHT: they might protect beneficiaries from some of the slings and arrows, including vengeful divorcing spouses, gold-diggers, swindlers, and so on. They might also protect from future changes in IHT law.

John_Pierpoint

I write as someone who has been a trustee of both a "discretionary" and an "interest in possession" trust.
Trusts can be a lot of administrative hassle so it is important to understand the objectives of the trust (not just its powers).