Trusts enable you to transfer assets out of your estate for IHT purposes, but enable trustees to exercise some degree of control over capital or income (and you can be a trustee). There may be an IHT charge on creation of trust if it is a discretionary trust, but this would be at 20%, and then only if transfer plus previous chargeable transfers made in preceding seven years exceeds ‘nil' rate.

Life assurance policies should be arranged under trust, so that proceeds do not form part of your estate on death for IHT purposes.

If you are considering making substantial lifetime gifts you should talk to an independent financial adviser now, as it might be prudent to make them sooner rather than later.

A potential IHT liability could be mitigated. If you are likely to fall foul of it, then an IFA can help you arrange your tax affairs to minimise any IHT liability, and provide professional independent financial advice specific to your circumstances.

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Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.

No offense to them. I respect their decisions. Everyone has right to voice out their opinions, but no one has right to force others in accepting their belief. Thank goodness my internet marketing pals have encouraged and supported me all way.

Believe that you have capacity and power to attain moneymaking success, and you're halfway there.

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Sacrifice. Instead of watching TV or going shopping, invest more time on those activities that would propel you in reaching your financial goals.

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