The main consideration for a client who wants to provide for children in his Will is to decide the age at which they should inherit, and whether they are to inherit outright or whether their inheritance should be held in trust. This will boil down to personal preference, although clients will need some steering through the different tax consequences of the various options. Reference should be made to the practice notes elsewhere in this guidance note for a detailed discussion of the tax aspects relevant to each of the options mentioned below.
These are usually more suitable for adult children. Inheritance tax may be payable on the clientβs death and then the property becomes held in the childrenβs own estates for inheritance tax purposes. The possibilities of a future divorce, bankruptcy or a childβs profligacy are common reasons for avoiding an outright gift β see βTrust optionsβ below.
For younger children, clients invariably want some sort of trust.
Two types of trust which receive special
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Emma Haley is a senior associate solicitor at leading private client firm, Boodle Hatfield LLP, renowned for providing first-class and practical legal advice to wealthy clients around the world.Emma has many years experience in dealing with all aspects of wills, probate, capital taxation and succession planning as well as UK and offshore trusts. Emma currently heads up a technical know-how team and is a regular writer and lecturer on estate planning and inheritance tax and also a member of the Society of Trust and Estate Practitioners.
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