Trusts can indeed be a valuable tool for estate planning, especially when it comes to managing inheritance tax (IHT) liability and ensuring that your assets are passed on to your loved ones efficiently.

A trust is a legal arrangement where assets are transferred to trustees who manage those assets on behalf of the beneficiaries. One key advantage is that assets placed in a trust are held outside of your estate, which can help reduce the IHT bill since they are not considered part of your estate for tax purposes.

The right trust structure allows beneficiaries to access the assets after your death, potentially providing liquidity to cover IHT expenses without needing to sell off other estate assets. However, trusts come in various types, including discretionary trusts, bare trusts, and interest in possession trusts, each with different rules regarding taxation and beneficiary rights.

Because of the complexity surrounding trust law, working with professionals like those in the GHBC network can help you navigate your options and tailor a plan that suits your estate goals, ensuring a smooth and tax-efficient transfer of wealth to future generations.