Inheritance Tax - Trusts are they worth doing ?

Baldytyke88

Marcon said:

Here's the 'more information': https://www.bannerjones.co.uk/you-your-family/services/putting-your-affairs-in-order/trusts/pages/compensation-protection-trust-explained

Thanks for that, that looks more realistic, but although she received compensation for cycling accident, she is still working and functioning normally.

Some people don't seem to like pensions and don't see the advantages, the money is set aside because she is self-employed and has no pension.

I was told it's in a trust with no interest, I guess the administrators need a fee, do they keep pace with inflation?

Grumpy_chap

segovia said:

Baldytyke88 said:

segovia said:

I know, we have friends now who are seeking financial compensation from a firm of IFA's who set up a trust to avoid parents care home fees and IHT. IMHO I think they are wasting their time 

My sisters daughter is said to have put her compensation into a trust, I am trying to find out more information.

I am told that she does not have a pension; she has done it for that reason. It sounds bizarre, her friend has a trust too. She is not rich and there will be no inheritance tax to avoid.

It seems if you have a trust, it's not your money, so you are eligible for benefits. Google says it could be a bypass trust?

That makes sens if you are on benefits and suddenly come into some money, I'm not saying I agree with it however (;-) 

If money is put into a trust for the purpose of increased eligibility for mean-tested benefits, that is likely to be considered as deprivation of assets.

Baldytyke88

Grumpy_chap said:

If money is put into a trust for the purpose of increased eligibility for mean-tested benefits, that is likely to be considered as deprivation of assets.

Placing assets in a trust can be a legitimate and effective strategy for tax mitigation