In your lifetime you can create a trust into which you can place chosen assets, which you no longer need yourself. This reduces your own wealth and thus your exposure to inheritance tax – or maybe even wealth tax should that become a reality.
By creating a discretionary trust in your Will for the benefit of your spouse and children, you can take advantage of the nil rate band of inheritance tax and save literally thousands of pounds of tax – see our companion leaflet ”Why make a Will” You could settle assets in trust for your grandchildren in your lifetime or after your death. Skipping a generation in this way reduces your children’s exposure to tax.
A charitable trust created in your lifetime or in your Will can receive unlimited assets, all of which can be free of all forms of taxation.