The Problem
When assets are left under a will they are potentially subject to Inheritance Tax. Your children in turn leave it to their children and the same assets will be taxed again. Your children, and even your grandchildren may have to pay tax on money that you have already paid tax on.
Generational IHT is a crafty HMRC arrangement where money is taxed every time it’s passed down from generation to generation in the form of Inheritance Tax if the assets are left absolutely.
The Solution
Setting up a Trusts in conjunction with your Wills can ensure that the taxman only takes one bite of the cherry.
Whilst the family are still fully able to benefit from the assets, they are sheltered from threats of being unnecessarily taken to pay for care fees, protection against divorce, whilst also not being vulnerable to Inheritance Tax in the name of the next generation.