Trusts guide

sweety

Hi all
Have heard there are trusts available which allow any children to have their ‘inheritance’ protected from subsequent partners in event of divorce etc. Is there a guide to trusts i should be reading or do i need legal advice. At this stage i am looking at options to ensure my 2 boys can inherit my house and their grandmas house with as little inheritance tax to pay as can be achieved....but would like to understand more about the other types if trusts and how they might be useful. It seems the super rich hardly ever pay iht on their multi millions and i would like to know how!
Any advice for further reading please?

Marcon

sweety said:

Hi all
Have heard there are trusts available which allow any children to have their ‘inheritance’ protected from subsequent partners in event of divorce etc. Is there a guide to trusts i should be reading or do i need legal advice. At this stage i am looking at options to ensure my 2 boys can inherit my house and their grandmas house with as little inheritance tax to pay as can be achieved....but would like to understand more about the other types if trusts and how they might be useful. It seems the super rich hardly ever pay iht on their multi millions and i would like to know how!
Any advice for further reading please?

Definitely one where you need legal advice. There's all sorts of nonsense on the internet about trusts and what they can and can't do.

IHT and property - try https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band which should give you some reassurance on the tax front.

SeniorSam

No Inheritance tax to pay unless grandma's estate is worth more than the allowances. £325,000 each person, Grandpa and grandma plus residential allowances as well, so estate needs to be higher to have to pay taxes. Solicitors can help but such trusts are easily put together within your own Will. YOU then also have an allowance but the solicitor can explain.

Keep_pedalling

You are looking at two things here, a trust to protect your children's inheritance in the event of the surviving partner remarrying and limiting your estates IHT liability.

A life interest trust will do the former and it is something you can build into your will, and the solicitor you use to make the will will be able to advise you.

Trusts are not going to save IHT, and (assuming you are a married couple) unless your joint assets exceed £1M IHT is not likely to be an issue at all. If your assets exceed that then I would advise taking professional advice from an IFA.