Tax & Trusts

Tax & Trusts

Talking to independent financial advisers about estate planning is incredibly wise. IFAs can give you expert advice about inheritance tax, trusts, and other important topics. Their goal will be to make the right arrangements for you, ensuring as much of your estate passes on to the right people, at the right time, while keeping any taxes to a minimum.

Making provisions

Sadly many people pay more tax on their estate than they need to because they don't get sound financial advice. An IFA can help you to avoid this by ensuring you make the most of the various reliefs and allowances. A proper plan here can make all the necessary provisions and help you to navigate the complex world of inheritance tax and trust planning.

Roy Jenkins (a UK Member of Parliament) famously said the Inheritance Tax is a voluntary tax paid by people who trust the Government more than they trust their children. Meaning that, with good planning and taking advice, this tax can be avoided.

What to look at with an IFA?

Good estate plans cover important issues such as:

  • Pensions and any tax relief you can get on them
  • How to make best use of your annual capital gains tax allowances for tax free growth
  • How to plan to reduce any potential inheritance tax liability
  • Maximise use of annual tax-free investments allowance using ISAs
  • Making regular gifts to family and charity donations



One thing you may want to look at here is if setting up a trust would be worthwhile. There are many situations when it can be the most effective way to ensure that loved ones are looked after when you die. Trusts allow funds to be paid out to a surviving spouse or your children immediately and not be held up until probate (Confirmation in Scotland) is granted which can take on average between one and two years.

An IFA can guide you here, offer advice about how to set up trusts, the terms, and what it will mean for the beneficiaries. The most important aspect about trusts is that they usually need to be set up at least seven years before death and can not be arranged if you suffer from dementia or are not of sound mind.