Managing wealth for future generations

If you are looking for tax efficient ways of passing on your wealth to provide for future generations, but are reluctant to give large sums of money outright or even when your beneficiaries reach a specified age, then you should consider a Pilot Trust (or feeder trust).

Since the Finance Act 2006 virtually all lifetime Trusts and some Will Trusts are subject to an inheritance tax charge every 10 years.

Pilot Trusts should be considered for the following reasons:

  • A Trust is entitled to its own nil rate band for inheritance tax (IHT)
  • If you create more than one Trust, each has its own nil rate band as long as they are created on different days
  • You can set up more than one Discretionary Trust with token sums of money, and another Trust on your death, and add them via a specific legacy in your Will
  • This provides protection from the 10 yearly IHT charges

A Pilot Trust can be a useful vehicle for:

  • Ensuring young beneficiaries are provided for
  • Creating Trusts to benefit different sections of your family
  • Unmarried couples may also find a Pilot Trust useful
  • If you have a substantial estate you may wish to create multiple Pilot Trusts to increase the availability of nil rate bands – but you would need to balance the advantages with the increased administration and compliance requirements. A Pilot Trust can be set up easily and at the same time as you make your Will
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Please contact us to discuss how our specialist Trusts Team can help you with your Pilot Trust or Bypass Trust.

Find out how Nelsons can help you. Contact our friendly team for a guaranteed fast response.

For advice and support 0800 024 1976