Our private client department can assist in the creation and planning of Trusts, in tax efficient Will drafting and with other steps to minimise the impact of Inheritance Tax upon death.
Trusts
We can assist in planning and drawing up Trust documents on your behalf. A Trust is a legal mechanism whereby assets are held by one party for the benefit of another. There is often press coverage about the tax saving aspects of Trusts and they are commonly used to this end. However Trusts are also very useful when trying to safeguard assets for young children or vulnerable people. Since those who benefit from the Trust do not legally own the assets in the Trust they cannot deal with them except under certain conditions. We can prepare such Trusts either for children or for people with learning disabilities.
We can also prepare Trusts on your behalf to minimise the impact of Inheritance Tax. There are a number of ways of achieving this, however one of the most common is what is called a nil rate band discretionary Trust loan notescheme. Despite some speculation in the press that these Trusts might be affected by changes in the 2006 Budget, they were not and remain a very effective means of minimising the impact of inheritance tax upon death.
In addition to using specific Trusts, there are other ways to minimise inheritance tax such as by making lifetime gifts or, in the event that someone dies, by varying the terms of the Will or other transactions taking effect on death, with a view to reducing the tax burden. We can advise on suitability of a Deed of Variation, assist in drawing up the necessary Deed and notifying the appropriate authorities.
We can also deal with the administration and winding up of Trusts and also act for Trusts or beneficiaries, giving advice as to their rights and duties.
For further information please contact Robert Sawers in our Petersfield office or James Sawers in our Midhurst office.
