No one likes to think about a time when they will be gone, but new figures have shown that over half of the population of adults in the UK do not have a will. This means that over 31 million now run the risk of dying intestate and having their estate distributed solely according to intestacy law. Thinking about putting plans in place for those that you will leave behind is important and could be simpler than you might think. Understanding things like trust funds, UK inheritance and when you might need the help of solicitors can be important for planning the future.
What is UK Inheritance Tax?
UK inheritance tax is the name for the tax that is paid on a person’s assets after they pass away. It can be a confusing matter, and how much your family will pay after you pass will depend on a range of variables such as how much cash you have in the bank, whether you own the property or business, and any investments you have made. It is important to note that if your estate is worth over £325,000, your family will only pay Inheritance Tax on the amount. So, if your estate is worth £700,000, your family will owe tax on £375,000. If you choose not to leave any assets to charity, the amount of inheritance tax to be paid will be £150,000. This is quite a hefty amount of the estate to be taken in tax, so where possible it is a good idea to do what you can to reduce the amount of tax your family will pay or help them to completely avoid it if you can. Putting your assets into a Trust Fund is one way to avoid Inheritance Tax.
Setting up a trust fund in the UK
Setting up a trust fund UK is a good way to manage and protect your assets, including your money, investments and property. There are three different roles that need to be fulfilled within a UK Trust Fund, with each individual having different rights and responsibilities. The three roles within a Trust fund are:
- The ‘Settlor’, who puts the assets into the Trust,
- The ‘Trustee’, who manages the Trust, and
- The ‘Beneficiary’, who benefits from the Trust.
There is also a range of different trusts, each one with different requirements, restrictions and tax rules. Establishing what type of Trust fund to set up can be a confusing process, so it is always best to seek the advice of a specialist solicitor.
When will you need Trusts, Wills and Probate Solicitors?
If there is anything that you are confused about it regards to UK inheritance tax or setting up a trust fund, then a specialist solicitor will be able to assist you. There are a number of things that they will be able to help you with, including:
- Will writing
- Deed of Variation
- Inheritance Tax
Solicitors specialising in wills and trusts will help you to put your mind at rest about these important issues.