#TVLawyer S2 Ep2 - Can Setting Up A Trust Save You Paying Inheritance Tax?

In this episode of the #TVLawyer Podcast, Melinda Giles sits with Giles Wilson Partner and STEP-qualified solicitor Pippa Bavington to demystify the process of setting up a trust following the Autumn Budget 2024. Here, the pair discuss how trusts can offer greater control over your legacy and why expert advice is key when setting these up. Pippa also explains that while a trust may be able to reduce your IHT bill, using it solely for this reason can have underwhelming results. In addition to this, Melinda and Pippa discuss: How it’s a costly misconception that trusts protect your assets from being taxed Why a Lifetime Trust may face an Inheritance Tax charge every 10 years after its creation The complications and responsibilities involved in being a trustee How a Disabled or Vulnerable Person’s Trust works, and the advantages these offer to protect those with additional needs How Discretionary Trusts work and why they’re unlikely to stop you or your beneficiaries from paying IHT Why you shouldn’t rush to place your pension within a trust just yet following the Autumn Budget Why you should avoid listening to advice that suggests you can place your home in a trust to reduce your IHT burden Chapters: 0:00 - Introduction 1:41 - What is a trust and what is people's general understanding of it? 2:27 - Trusts: Good for controlling finances, but not necessarily for tax 4:05 - The tax implications of trusts (Income Tax, Capital Gains Tax, Inheritance Tax) 6:15 - The challenges involved in being a trustee 6:56 - Can putting money in a trust reduce your Inheritance Tax? 8:31 - What is a Disabled or Vulnerable Person's Trust? 10:08 - What is a Lifetime Trust? 11:58 - What is a Discretionary Trust and can it help you minimise Inheritance Tax? 14:16 - Can you put your pension into a trust? 15:06 - Did the rules regarding tax on trusts change in the Autumn Budget? 16:40 - Why you shouldn't put your home in an "Asset Protection Trust" 17:24 - Closing remarks