Kent Solicitors

Trusts are often set up as part of a divorce settlement because a spouse is more inclined to give assets to the other, if they are held in trust rather than given out right. However, changes in the Finance act 2006 have made the position more difficult

Simplified example: Under a court order or by agreement on a settlement, Husband pays a lump sum to Trustees to hold in trust for Wife for life, thereafter for children

There is no inheritance tax on creation off the trust or transfer of money into it, but there is a 10 yearly charge and also further charge when money leaves the trust

There is no Inheritance Tax on the death of Wife

Labels: Divorce Trusts