Trust wills may support inheritance tax planning

Trust wills might be used by those hoping to minimise the burden of inheritance tax, as one expert notes certain measures could help individuals avoid probate.

The Daily Mirror reports provisions such as a life assurance policy may be one way to minimise state levies, revealing such products can pay out a lump sum upon death.

But setting up a trust will may offer the peace of mind people seek, as it allows assets to be distributed without being subject to the probate process.

Inheritance tax planning could secure wealth for future generations, as the value of property may make an estate liable for the highest tax bracket upon the death of the owner.

This would mean personal wealth is subject to charges of 40 per cent and could substantially reduce probate beneficiaries' share.

A recent article in the Daily Telegraph revealed this may come as a particular shock to those who have a low income but live in a high-value house.

Published by Jessica Shervin