Saving Inheritance Tax

February 4th 2020

We were instructed to prepare a Will for an extremely wealthy gentleman, a member of a family with a household name.  The testator wanted to leave his multi-million pound estate to various family members, and in the initial instructions set aside a percentage on discretionary trusts, which included a family charity of which the testator was particularly keen to benefit.

A week or so later we went to visit the client and suggested that rather than include the charity within a discretionary trust, that there should be a direct gift to the charity.  The testator readily agreed upon learning that this would save a minimum of £800,000 in inheritance tax.