Trusts: 4 ways they can be incorporated into your financial plan

Trusts can be useful financial tools in certain situations, but they can seem complex. Here, we explain what a trust is and some of the circumstances where using one may be appropriate. What is a trust? A trust allows you to give rights to hold assets to one party, known as the trustee, for the benefit of another, known as the beneficiary. It provides legal protection and helps ensures your wishes are carried out. You can place certain conditions on assets within trusts that the trustee must adhere to. There are ...

Could you unexpectedly cross the Inheritance Tax threshold?

For some people, the Inheritance Tax (IHT) thresholds can seem a long way off. But when they pass away, their estate faces a significant tax bill that hadn’t been expected. It can be easier than you think to inadvertently cross IHT thresholds. When is IHT paid? Inheritance Tax is a tax on your estate after you’ve passed away, reducing how much you leave behind for loved ones. The standard rate of IHT is 40%. However, the majority of estates aren’t liable for IHT because they fall below thresholds. Nil-rate band: If ...