Trusts can be beneficial in preparing for the future. They can produce an inheritance tax saving; however, they also incur the on-going costs of administering the trust as well as potentially higher rates of income tax and capital gains tax.
Depending on your circumstances, they can be very useful even for people with significantly less than £9 billion in the bank!
The key thing is to get good advice early on.
Pressure groups demand reforms after network of trusts enables Hugh Grosvenor to avoid significant cut to fortune The new Duke of Westminster has inherited hundreds of acres of prime central London land in Mayfair and Belgravia, including Grosvenor Square. The Duke of Westminster’s death has led to calls from tax campaigners to reform the system of trusts which has allowed Britain’s wealthiest families to preserve fortunes through generations by avoiding death duties.