| Inheritance tax is basically an amount of money that | | | | helps with the planning to reduce inheritance tax. |
| the Government will charge when someone hands | | | | Setting an inheritance tax trust is one of the simplest, |
| down anything to his/her sons and daughters, or else | | | | and easiest ways to reduce the amount of tax, one |
| to their family or friends. It is simply an amount charged | | | | pays on assets that they wish to pass down to |
| on the value of the property, or the amount of money | | | | friends, family, or relatives. A trust can be defined as a |
| that is being passed on. | | | | legal arrangement between two parties for the |
| These days, everyone is tense about inheritance tax, | | | | transfer of assets. |
| mainly because people think it is incomprehensible, | | | | Inheritance Tax Trust can be created when you are |
| although it is not that difficult to understand. Previously | | | | alive, although you can make a trust in your will as well. |
| only the rich ever cared about it, but these days, | | | | One can use trust funds to pass on money, without |
| everyone seems to be catching up, and worrying, | | | | paying tax on it. This is possible when you put small |
| seems to be infectious. A chunk of the inheritance | | | | sums yearly into your trust. You will not be able to put |
| gets wasted in taxes, and hence a smart approach is | | | | large sums at once. |
| necessary. Inheritance tax is also known as voluntary | | | | Because of the fact that small sums have to be |
| tax, because with proper planning, one can avoid it. | | | | added yearly, this also means that those wanting to |
| Trusts are useful for several reasons. Trusts can be | | | | save a substantial amount have to start very early, it is |
| used to transfer numerous varieties of assets. A few | | | | a gradual process. Many people are likely to be put off |
| of them could be land, shares, money, or even a | | | | by such conditions, but this is one of the best options in |
| house. Even though, the trust fund has been made, the | | | | the market. |
| trustees, or the one who opened the trust in the first | | | | Each trust has their own trustees, these are people |
| place, still have some degree of control over what | | | | selected by the person who opened the trust. |
| happens to the assets. | | | | Trustees have to inform the taxman of every gift into |
| With the help of trust funds, one can make future | | | | the trust that is above £10,000, or gifts worth |
| arrangements for friends and family. One can present | | | | £40,000 over a period of ten years. The trust |
| gifts to add to the trust, where one can identify the | | | | will have to pay tax, 6% on the assets that are going |
| beneficiaries and give details about how, and when | | | | beyond the nil band rates. A nil band rate is the |
| can they obtain the savings. One can also protect | | | | perimeter for trusts; this means trusts that are within |
| assets by not giving the beneficiaries control over | | | | the nil band rates, do not have to pay tax. |
| them. One of the biggest benefits of trusts is that it | | | | |