Have the effects of the pandemic reduced the value of trust assets? If so, now may be the time to make the best of a bad situation.
There is a high probability that all tax rates will have to increase to help pay for the government’s costs in dealing with the pandemic. So, taking advantage of the current rates of tax on assets with depressed values could be sensible planning
The rate of inheritance tax applying to trust assets is set either when the trust is set up or at the last 10 year anniversary of the creation of the trust. That rate then applies to the value of the assets leaving the trust. If the value of those assets is depressed taking them out of the trust now may help minimise inheritance tax especially if a 10 year anniversary is on the horizon and the asset may increase in value before that date.
For more information contact Carolyn Bagley on 01908 247015 or click here to email Carolyn. This article is the final installment of a four part series, to read the previous article on Lifetime Gifts click here
This is an outline guide only. No action should be taken based only on the information here. you should take appropriate professional advice tailored to your specific circumstances.