Overview
Preserving wealth for future generations while giving you the financial benefits you need in the meantime requires a combination of sound investment management and careful tax planning. This will often be most critical when new wealth is created or received. For example, following the sale of a business, on retirement, or on receipt of an inheritance.
Careful thought needs to be given to your own needs first, both in the short and longer term. The first golden rule of wealth management is never to have the ‘tax tail’ wagging the dog! Achieving tax savings should never be at the expense of your own financial security.
To ensure your capital keeps on working and growing for you and your next of kin the strategy needs to be reviewed regularly. Only through an ongoing programme of care and maintenance can you be assured of a successful outcome while avoiding any undue risk.
How Inheritance Trusts Can Help
Inheritance Trusts have many advantages in estate planning:
You can retain a degree of flexibility over who receives the trust assets and can take into account future changes in family circumstances (depending on type of trust).
You can use a trust to make a gift to anyone, of any age.
A trust can help speed up the administration of an estate and avoids the need for probate/confirmation (the official ‘proving’ of a will) on your death.
Transferring capital into a trust can reduce your liability to Inheritance Tax.
You can receive a regular income on a tax efficient basis.