03/11/2025
Inheritance tax is becoming a problem for more families every year.
Frozen thresholds, inflation and the price of a family home have combined to push many families past the £325,000 barrier, and into paying 40% on money that they have been bequeathed. There are ways to avoid this harsh tax, and one of the simplest used to be to put all your spare wealth into your pension.
Unused pension funds could be passed on to your loved ones intact, as they were considered outside your estate.
The government, desperate to replenish their coffers, has removed this concession, and from April 2027, pension funds will be counted as part of your estate, and taxed accordingly.
This sad development has left many people to look at trusts as a way of protecting their wealth for the next generation, however, putting property or other assets in a trust may not always protect you from the taxman. There can be pitfalls if you try to set up a trust to avoid tax without expert advice.
At Continuum we are asking – can you trust a trust?
Find out how trust can be pivotal in inheritance tax planning with new regulations coming into effect in April 2027.
