How Trusts Can Save Money and Time

Assets placed in a trust may be exempt from inheritance tax, charged at 40% on everything over £325,000, as long as the person making the transfer survives for at least another seven years.

It’s important to note that transferees relinquish ownership of that money or property but do retain a certain amount of control.

Setting up a trust can also save a mountain of red tape. It can take a year to collate assets and liabilities, submit and pay for probate forms, pay 40% inheritance tax, obtain a grant of probate, advertise for claimants or creditors and deal with subsequent claims, pay outstanding income and capital gains taxes, apply for inheritance tax discharge certificate, pay debts and legacies, prepare estate accounts and tax certificates and obtain approval from beneficiaries.

Or… trustees can just send a claim form to the insurance company with the death certificate and policy and receive the proceeds for the beneficiaries.

For advice or to set up a trust, contact Heritage Will Writing on 02380 879243.