#TVLawyer Podcast

In this episode of the #TVLawyer Podcast, Melinda Giles sits with Giles Wilson Partner and STEP-qualified solicitor Pippa Bavington to demystify the process of setting up a trust following the Autumn Budget 2024. Here, the pair discuss how trusts can offer greater control over your legacy and why expert advice is key when setting these up. Pippa also explains that while a trust may be able to reduce your IHT bill, using it solely for this reason can have underwhelming results. In addition to this, Melinda and Pippa discuss: - How it’s a costly misconception that trusts protect your assets from being taxed - Why a Lifetime Trust may face an Inheritance Tax charge every 10 years after its creation - The complications and responsibilities involved in being a trustee - How a Disabled or Vulnerable Person’s Trust works, and the advantages these offer to protect those with additional needs - How Discretionary Trusts work and why they’re unlikely to stop you or your beneficiaries from paying IHT - Why you shouldn’t rush to place your pension within a trust just yet following the Autumn Budget - Why you should avoid listening to advice that suggests you can place your home in a trust to reduce your IHT burden Chapters: 0:00 - Introduction 1:41 - What is a trust and what is people's general understanding of it? 2:27 - Trusts: Good for controlling finances, but not necessarily for tax 4:05 - The tax implications of trusts (Income Tax, Capital Gains Tax, Inheritance Tax) 6:15 - The challenges involved in being a trustee 6:56 - Can putting money in a trust reduce your Inheritance Tax? 8:31 - What is a Disabled or Vulnerable Person's Trust? 10:08 - What is a Lifetime Trust? 11:58 - What is a Discretionary Trust and can it help you minimise Inheritance Tax? 14:16 - Can you put your pension into a trust? 15:06 - Did the rules regarding tax on trusts change in the Autumn Budget? 16:40 - Why you shouldn't put your home in an "Asset Protection Trust" 17:24 - Closing remarks

In the first episode of Series 2 of the #TVLawyer Podcast, Melinda Giles sits down with Partner and Private Client specialist Caroline Woodham to unpack the key changes to Inheritance Tax law in the Autumn Budget 2024. From changes to Business Property Relief (BPR) and Agricultural Property Relief (APR), to the removal of exemptions for pension funds. Caroline, an expert in Inheritance Tax (IHT) planning, explains the impact of these changes, who may be affected, and steps anyone concerned can take. In this episode, they discuss: - The advantages of the nil-rate band and residence nil-rate band remaining fixed at their current rates until 2030 - How most unused pension funds and death benefits will no longer be exempt from Inheritance Tax (starting from April 2027) - Why this change could mean more estates are subject to IHT than would have been previously - The possibility that pension providers will be responsible for this side of IHT instead of the person dealing with the estate - What the proposed reforms on BPR and APR mean for business owners and farm owners looking to pass assets onto their descendants - The benefits of there being no changes to the rules on gifting or deeds of variation - Why these changes will require more clear, considered and professionally-led IHT planning Chapters: 0:00 - Introduction 1:25 - Did the Autumn Budget change Inheritance Tax thresholds in the UK? 2:53 - Who is affected by Inheritance Tax law? 3:58 - How could pension changes impact your Inheritance Tax planning? 7:00 - What is the typical Inheritance Tax relief for a married individual with children? 8:31 - Who will be responsible for settling Inheritance Tax relating to pensions? 11:04 - What happens to your Inheritance Tax if your estate is worth over £2 million? 12:08 - How has the Budget changed Inheritance Tax reliefs for business and farm owners? 14:14 - The importance of professional Inheritance Tax planning 15:33 - More people are subject to Inheritance Tax than you realise 16:33 - Did the Budget change Deeds of Variation or gifting for Inheritance Tax? 18:47 - Closing remarks