Will Trust
Nil rate band planning – the Will Trust and the Advanced/Lifetime Trust
Since the introduction of the pre-owned assets tax (POAT) there has been understandable market focus on Loan Trusts and Discounted Gift Trusts in connection with lifetime inheritance tax planning for those with cash/investments and who require some continuing access to funds. However, both plans provide less than complete access to funds for the investor. The Loan Trust provides flexible access to the original capital but not any growth. The Discounted Gift Trust provides access to a regular stream of payments conditional on survival but no other access to capital.
The “will trust” is probably the most talked about option. Its major benefit is that the investment remains completely within the legal and beneficial ownership of the investor. The will, being ambulatory in nature, can be changed at any time up until death.
