This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more

Discretionary trust will 'may help beneficiary with inheritance tax'

07 August 2007
People looking to write a will in the near future may be able to save their beneficiaries money on inheritance tax, it has been claimed.

According to Willcare, a nil rate band discretionary trust left to a partner, husband or wife is taxed differently.

The firm stated that a non-taxed sum can be placed into a trust upon death and can go untaxed - giving them an overall increased inheritance.

Once the spouse dies, the value of the will is set off against the estate, with the nil tax rate allowance taken into account before inheritance tax, it added.

"Everyone has a personal tax allowance for inheritance tax purposes and this needs to be used on first death. However if the entire estate is passed to the remaining spouse [or] partner, there is no [tax] to pay due to inter spousal exemption," said Willcare managing director Mark Jackson.

Inheritance tax, or death duty, was originally introduced in 1796.

Find out more about endowment

track© Adfero Ltd