Tax and Trusts

As you grow older, taking some time to make provisions for those you love after you are gone becomes essential. While you may already have a Will, you may not have considered the potential tax implications your loved ones may face upon inheritance. With the prospect of Inheritance Tax taking away a significant portion of your estate, how can you ensure that your loved ones are fully taken care of?

At Redkite Solicitors, we understand how important it is for your estate to be distributed in accordance with your wishes. That’s why each day, our specialist solicitors are here to help people from all walks of life through tax planning and trusts, allowing you to pass on your wealth to the next generation in the most straightforward and cost-effective way possible.

Why choose Redkite Solicitors for tax planning and trusts?

Whether you are in the process of estate planning, or you need advice about where to start, you can rely on our dedicated Tax and Trusts solicitors to help you protect your interests. Our experts have in-depth knowledge regarding all aspects of Trusts and their uses, and can provide practical advice about how to minimize the amount of Inheritance Tax due on your estate.

There is no such thing as an ‘off the shelf’ solution, and from our experience, we’ve learned that every one of our clients has their own personal concerns, responsibilities, and needs. That’s why, when you instruct a member of our team, we will always take the time to listen to you and gain a thorough understanding of your particular situation. That way, you can guarantee that the solution we find is completely tailored to your needs.

As your dedicated solicitors, our priority is to protect your family assets and make provisions for those you leave behind. We achieve this by explaining your options with clarity, cutting out the legal jargon to provide you with straightforward, easy-to-digest information.

With offices on 6 high streets across Pembrokeshire, Carmarthenshire, and Cardiff, you can drop in at any time to speak to a member of our team about tax planning and Trusts.

How can our tax and trusts solicitors help you?

Our experts have specialist experience in:-

  • Trusts
  • Appointing Trustees
  • Trust Administration
  • Acting as a Trustee
  • Lifetime Tax Planning
  • Lifetime Gifts
  • Succession Planning
  • Post Death Tax Planning

Although wills and trusts are the main tax planning tools, we can assist you with gifting personal and business assets during your lifetime as part of an overall tax planning strategy. When a situation calls for additional advice, we will liaise with specialist counsel, accountants, and independent financial advisers in order to achieve the best solution for you.

Home visits to those unable to travel to one of our offices are also offered as part of our commitment to client service.

Tax and Trusts FAQ

What is a trust?

Setting up a Trust can prove to be highly beneficial for people looking to make provisions for their loved ones after they have gone. The Trust itself is a legal document that appoints a third party to hold your assets on behalf of a beneficiary for a determined period of time. The person responsible for ensuring the instructions of the Trust are carried out is known as the Trustee.

In many cases, people create Trusts for beneficiaries who are still under the age of 18, with the instruction that the financial assets within the Trust can only be released upon their 18th birthday.

What is Inheritance Tax and what could this mean for me?

Inheritance Tax (IHT) is the tax due to the state on the value of your estate at the point your loved ones inherit it.

If your estate is worth £325,000 or less there is currently no inheritance tax due to be paid to the state.

If the total value of your estate is £325,000 or more, your beneficiaries will have to pay 40% of the value above £325,000 (the threshold of the nil-rate band). To minimize the amount your beneficiaries have to pay it is important that you take specialist legal advice and make provisions for the future through strategic tax planning.

Setting up a Trust is a popular and proven method of ensuring your chosen beneficiaries are able to keep the maximum amount of their inheritance. Setting up a Trust means that you are gifting something (such as money or property) to the Trust which, in turn, removes that money or property from your estate, allowing your loved ones to benefit in full while reducing the total value of your estate. This can be particularly useful for those with an estate valued just above £325,000, as it will bring their estate to within the nil-rate band and therefore avoid inheritance tax liabilities.

We always recognise the importance of our client’s individual financial security however and, whilst we are creative and often utilise some lateral thinking when tax planning, we ensure a balanced view is taken and that an individual’s own financial situation is never compromised.

Speak to our specialist solicitors about your individual situation and we will help you to get your affairs in order in the most tax-efficient way possible.

Why should I set up a Trust?

As well as minimising Inheritance Tax, setting up a Trust could be useful if you want to pass a sum of money to a loved one but are aware that they struggle to manage their finances. By instructing the Trustee to periodically provide money to the recipient, you could ensure that your loved one is cared for by receiving a steady stream of financial support whilst not being able to spend it all too quickly.

You may also consider a Trust if your beneficiary suffers from capacity issues such as a mental condition, and are therefore unable to manage their own financial affairs. This would ensure that the inheritance they receive will be protected from the local authorities should they be forced to sell their assets.

For more advice on tax planning and Trusts, get in touch with one of our specialist solicitors today.