Trust

smudger1946

Thinking of putting a property in a trust fund for my offspring to save inheritance tax?
What are the ins and outs and is it practical, if I were to pop my clogs today my estate (sounds grand don't it) would be just into the inheritance bracket?
Smudge

G_M

Who would be living there? If you, sounds like a Gift with Reservation......

If it's a 2nd property (let out?) then there's the 7 year rule.

I'm no expert but I'd suggest you talk to one - eg a solicitor experienced in wills and probate.

It's a complex area and you are not the first person in the country to contemplate avoiding IT on their property. I suspect HMRC have come across this before..........!

Bluebirdman_of_Alcathays

As GM says, trusts are complex. For most types of trust, Inheritance Tax is payable immediately, not when you die. It's 20% if the trustees pay, 25% if the settlor pays. Trusts shouldn't therefore be regarded as a simple vehicle to bypass IHT - they aren't (HMRC tend to cotton onto things quickly).

There can be alternatives, for which you'd need a good solicitor with experience in trust planning. I know a few if you need a recommendation.

Are you married? Is your estate worth over £1m? The easiest option is to give it to your kids now, and not die for 7 years!