Some people who make gifts to reduce Inheritance Tax are concerned about losing control of the money. This is where trusts can help. When you set up a trust it is a legal arrangement and you will need to appoint 'trustees' who are responsible for holding and managing the assets. Trustees have a responsibility to manage the trust on behalf of, and in the best interest of, the beneficiaries in accordance with the trust terms. The terms will be set out in a legal document called the 'trust deed'.
You need to bear in mind there might be tax consequences if you set up a trust. The rules around trusts are complicated, so you should always obtain professional advice.
For example, one of Garden Wall's trust strategies can:
Move settlor capital into a specialist trust outside of your estate free of IHT if you live for seven years;
Pay the settlor up to a 5% return with no tax charge;
On death of the settlor the beneficiaries specified by the settlor receive the balance of the remaining capital;
Any growth on the capital be outside of the estate;
The return be agreed upfront and paid for life;
Will writing is not an FCA regulated activity. Garden Wall is an Appointed Representative of New Leaf Will Writers Federation Ltd (NLWWF).
All wills are reviewed and approved by NLWWF Compliance department.