Testamentary Trusts

Testamentary trusts take effect after death to protect inheritances and reduce tax. We cover their setup, inheritance tax planning and recent legislative changes.

Are Discretionary Will Trusts Still Necessary?

Discretionary trusts have lost some appeal due to inheritance tax changes, but they still offer real benefits in certain situations.

Avoiding Inheritance Tax

Set up a Nil Rate Band Discretionary Trust to use both your and your spouse's inheritance tax exemptions and reduce what your dependants pay.

Budget 2011 and Inheritance Tax: What Changed?

The 2011 Budget introduced a tax break for inheritance donations to charity, but did little to help most people facing the 40% tax on estates over £325,000.

Checklist: Do I Need a Testamentary Trust?

Figure out if a testamentary trust makes sense for your situation with this practical checklist.

Failure of Testamentary Trusts

Testamentary trusts can fail if they don't meet legal requirements or the trustee doesn't follow the terms properly.

Life Insurance Trusts

Using a life insurance trust can protect your policy payout from inheritance tax and ensure your family gets the full benefit.

Potential Problems with Inheritance Tax and Trusts

Nil Rate Band Discretionary Trusts can cut inheritance tax, but they come with unexpected costs and tax charges during your lifetime.

What Is a Testamentary Trust?

A testamentary trust is created after someone dies, usually through their will, to manage assets for heirs who aren't yet ready to handle money on their own.

What Is Inheritance Tax?

Inheritance tax is a levy on your assets after death, payable only if your estate exceeds £325,000.