Providing for children

Produced by Tolley in association with

Trusts and Inheritance Tax

Guidance

The main consideration for a client who wants to provide for children in his Will is to decide the age at which they should inherit, and whether they are to inherit outright or whether their inheritance should be held in trust. This will boil down to personal preference, although clients will need some steering through the different tax consequences of the various options. Reference should be made to the practice notes elsewhere in this guidance note for a detailed discussion of the tax aspects relevant to each of the options mentioned below.

Outright gifts

These are usually more suitable for adult children. Inheritance tax may be payable on the client’s death and then the property becomes held in the children’s own estates for inheritance tax purposes. The possibilities of a future divorce, bankruptcy or a child’s profligacy are common reasons for avoiding an outright gift ― see ‘Trust options’ below.

Trust options

For younger children, clients invariably want some sort of trust.

Two types of trust which receive special

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Emma Haley

Associate at Boodle Hatfield LLP

Emma Haley is a senior associate solicitor at leading private client firm, Boodle Hatfield LLP, renowned for providing first-class and practical legal advice to wealthy clients around the world.Emma has many years experience in dealing with all aspects of wills, probate, capital taxation and succession planning as well as UK and offshore trusts. Emma currently heads up a technical know-how team and is a regular writer and lecturer on estate planning and inheritance tax and also a member of the Society of Trust and Estate Practitioners.

Popular Articles

Trusts and Inheritance Tax

Payments to trust beneficiaries

Payments to trust beneficiariesThis guidance note considers the trustees powers to make payments and whether the payment made is income or capital.This guidance note is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not

14 Jul 2020 12:52 | Produced by Tolley Read more

Corporation Tax

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more

Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more

��˾��ҹ��