Can a trust reduce inheritance tax?
- On June 15, 2023
- By GrowthInvest Marketing
If you are looking to pass on money and assets to family members, you may be considering whether to set up a trust. We explain how trusts work and if they can help reduce inheritance tax.
A trust gives you some control and flexibility over who benefits and when. Rather than simply handing over assets such as money or property to an individual, a trust allows those assets to be set aside until a later date.
It can also potentially save on inheritance tax (IHT) because it will reduce the size of your estate and potentially allow IHT allowances to be retained.
In this guide, we cover:
- What is a trust?
- How do discretionary trusts work?
- Bare trusts: the pros and cons
- Inheritance tax and trusts: how they can lower your IHT bill
- How to open a trust
Read more: What is the inheritance tax threshold?
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