Will Trust

A Will Trust can allow a married couple or registered civil partners to carry out inheritance tax (IHT) planning without losing access to their capital or the income arising on it during their lifetimes. It should be understood that although the nil rate band of the first spouse/partner is used on first death, the IHT saving does not occur until the last spouse/partner dies.

It is particularly useful for couples/partners whose joint wealth exceeds two nil rate bands, or where there are children from previous relationships.

  • It provides IHT planning for couples/partners who cannot afford to give away their capital and the income it generates.
  • Allows each spouse/partner to retain full access to and control of their capital during their lifetime.
  • Enables each spouse/partner to take regular withdrawals from the bond during their lifetime, if required.
  • Utilises the nil rate band of the first spouse/partner to die, without compromising the surviving spouse/partner’s financial security.
  • Allows the surviving spouse/partner access to the capital of the Will Trust.
  • Reduces the potential IHT liability on the death of the surviving spouse/partner.

The value of the bond held within the trust, and any income taken from it, can fall as well as rise and your clients, or their beneficiaries, may get back less than your clients invest.