Making plans to preserve family wealth

Making plans to preserve family wealth

Preserve family wealth and inheritance

There are various ways you can financially plan ahead to ensure an inheritance is as beneficial as possible. One of those ways is with a Trust, which can be created during life by an individual or left in a Will on death. They can be used to minimise tax and transfer wealth between generations. When created during life they can save significant inheritance tax if timed right, as they can remove the value from an estate on death. In addition, if you are thinking about giving away an asset which has gone up in value, by gifting that asset to a Trust, you may be able to rely on a relief known as ‘Hold Over Relief’ to defer the payment of Capital Gains Tax.

Trusts are also commonly used to protect vulnerable adults, for example family members with special needs and to preserve their entitlement to Means Tested Benefits.

Trusts can be used to protect family wealth by also ensuring that money is not wasted by a frivolous child, by protecting the estate from the bankruptcy of beneficiaries, and in certain circumstances can be used to protect an estate from care home fees. Making a gift into a Trust on the occasion of a marriage could protect the gift if there was a breakdown of that marriage. A Trust can also be useful in a re-marriage situation by providing for the surviving spouse, but still protecting the wealth for the children from the first marriage.

It is worth discussing your personal circumstances with a recommended and experienced solicitor to ensure your succession plans are correctly in place.

Speak to Howard Cohen for a no obligation chat on 0113 320 5000 or email