Property News · August 28, 2016

Dukes and other super-rich are not the only ones who can reduce death duties


While attacked as a way to avoid inheritance task, setting up a trust is a legitimate form of financial planning which is available to anyoneWhen the 6th Duke of Westminster died this month, his son Hugh Richard Louis Grosvenor took on not just his father’s title but also an inheritance estimated at £9bn. Under conventional inheritance tax rules (IHT), this could have resulted in a £3bn bill for the 25-year-old, a figure not far removed from the entire death duty take by the government for the last financial year. Instead, he avoids the sizeable bill because the estate is held in a trust structure set up in the 1950s.Long seen as the preserve of the wealthy – and criticised as a way for families to pass huge fortunes through generations by avoiding death duties – renewed interest has now been placed on trusts and future tax planning. Continue reading…

Source : theguardian.com
Read more…Dukes and other super-rich are not the only ones who can reduce death duties

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