This is a complex area and we strongly suggest that you contact WillPlan FREE  on 01276 482007 to discuss this with you further.

Experts at Discretionary Trusts: If the deceased’s estate is left to the surviving spouse, the deceased's nil rate band is not used. Currently up to £120,000, on the death of the survivor, could be saved if a Discretionary trust is created in the Will.

Payments can be made to the beneficiaries of the trust at the discretion of the trustees. Hence the surviving spouse (once established as a beneficiary) can receive financial benefit from the trust without the capital value of the trust being added to their estate.

There are forms that the trustees have to register with the Inland Revenue to establish the trust.

There are detailed tax arrangements for discretionary trusts and proper records and returns must be made to avoid the structure being waived by the Inland Revenue.