Insurance firm Friends Provident has announced the creation of a special new trust designed to help families minimise their inheritance tax (IHT) liability.
The trust enables couples to make a lifetime IHT planning arrangement where the couple will avoid wasting the nil rate band when the first partner passes away.
The other partner will then be able to retain lifetime control over their collective funds.
Beginning December 2005 registered civil partners can also benefit from the trust.
Friends Provident claims the trust could save people up to £110,000 on overall taxes at 2005 rates.
Ian Jefferies, head of investment marketing at Friends Provident said: "The trust is particularly useful for people unable to make significant gifts during their life either because they can't afford to or because they want control of their funds."To read more about investment, click here.
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