This simply is the continued application of Inheritance Tax on assets throughout the generations, which may mean that IHT has to be paid again and again on the same inherited assets on death and this will continue through future generations. Here at Will protect, we want to help mitigate against this, by using the power of trusts.
By not having a Trust included with your Will, any assets you leave behind to your Beneficiaries could be open to Inheritance Tax. The “theoretical box” of money that is left will keep getting Taxed as it is passed down in generations. The Taxed amount is currently at 40% for everything over £325,000 which over time means the inheritance left will become less and less.
If you and your partner have a mirror Will for example and you leave everything in your estate to your children, they could not only have to pay Inheritance Tax on their assets, but a second lot of inheritance tax on what you have left them! This can mean that an estate could lose 60% of its original value through Inheritance Tax alone by the time the inheritance reaches your grandchildren.
By including the correct Trust paperwork, can essentially means that there is a lock placed on this “theoretical box”, meaning that these taxes can be prevented. This will also mean that as the locked box gets passed down the generations, your family can benefit from what you have worked so hard to achieve.
Here at Will Protect we understand that everyone has different requirements when it comes to protecting your assets. That is why we offer a range of services to ensure we can help you sort any legal requirements. For an in depth discussion on how best to manage your estate, and which type of trusts would be most appropriate, then call our office on 01245 947797. Alternatively you can email firstname.lastname@example.org, and book a meeting with one of our experienced consultants straight away!