Most of us want to ensure that when we die we can pass on the maximum possible to our children, to better their lives.
However, if you are particularly wealthy, by leaving everything to your children you could inadvertently be passing on an inheritance tax liability when they subsequently die. The inheritance you leave to them will be added onto their own estates, which could make them sufficiently wealthy that they then suffer an inheritance tax liability.
We can help solve this problem by setting up one or more pilot trusts to which you can leave your estate. Most of us want to ensure that when we die we can pass on the maximum possible to our children, to better their lives. Again these are discretionary trusts with provisions to allow your children to borrow from the trust rather than giving them trust funds, so that again when they die their estate value is reduced when adding up their inheritance tax exposure.
So, whilst pilot trusts won’t help your inheritance tax liability they will undoubtedly help reduce the liability of your children. . . more inheritance for your grandchildren!