IWC are regulated by the Society of Will Writers and Estate Planning Practitioners

 

Pilot Trusts, which are sometimes referred to as "feeder trusts" are trusts that are set up during a persons lifetime. On setting up ordinarily you only need to place £10 into a pilot trust. This trust is then ready to receive funds whenever.

 

If used in conjunction with a well written Will which includes an Immediate Post Death Interest Trust (IPDI Trust), a pilot trust could be used to reduce a persons estate and negate inheritance tax.

 

Generally a person would calculate the value of their total assets, then divide this amount by the current nil-rate band (£325k as of April 09) then set up one pilot trust for each nil rate band. For example if your assets totalled £975K and the nil-rate band was still £325k you would set up three pilot trusts. When the estate passed to the spouse via the IPDI Trust there would be no inheritance tax to pay because of spouse exemption rules. Over the next years the spouse could pass money to the pilot trusts and when she passes away all of the estate could be in the pilot trusts and thus there would be no inheritance tax to pay.

 

Please note this is not an individual tax planning solution. Please call us for more details.

 

 

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