An alternative to gifting your capital is lending the money to a trust. This would usually be in the form of an interest free loan allowing you access to the original capital by way of ‘loan repayments’ if and when necessary. Loan repayments can also be arranged on a regular basis e.g. 5% each year over 20 years. As these are repayments of your own capital you are not subject to tax on this ‘income’ and on death only the amount of loan still outstanding will fall into your estate for Inheritance Tax purposes. The tax mitigation effects of a Loan Trust are gradual but it is ideal if you want the option to retrieve some or all of your capital.