How a gift trust works
You place a lump sum into trust for chosen beneficiaries, such as your children or grandchildren. Trustees manage it on their behalf. In many cases, once seven years have passed the gift falls outside your estate for inheritance tax.
Why choose a trust over a direct gift
- Keep control over when beneficiaries receive money
- Protect the gift from a beneficiary's divorce or debts
- Provide for grandchildren who are too young to manage money
- Start your inheritance tax clock running
Gift trusts are not right for everyone, particularly if you might need the money later. We look carefully at your income and future needs before recommending one.