Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Two trusts

06 March 2012
Issue: 4344 / Categories: Forum & Feedback
A divorced woman who is in her 70s intends to leave most of her estate to her son and daughter

Our client (X) is a divorced woman in her early 70s. She has an adult son and daughter (both married).

She is in good health and has an estate worth between £500 000 and £1m although a fair proportion of that would be eaten into should X live say into her 90s.

After a few specific legacies X is considering leaving her entire estate to her two children in equal shares but we wonder whether we can offer a slightly more adventurous approach.

Our initial view is that she should instead set up two discretionary trusts – one for each branch of her family. The intended benefit of that approach would be to allow her son or daughter to have the option of passing any wealth down to the next generation without the risk of a further inheritance tax charge.

Of course the same...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon