Wills & Trusts9 min read
Trust vs. Straight Will: Which Delivers the Better IHT Outcome?
•By ACJ Financial Planning
Side-by-side numbers on leaving assets outright, via discretionary trust or with a life-interest trust.
Three routes compared
| Route | IHT at death | Flexibility | Ongoing costs |
|---|---|---|---|
| Outright | 40% | Low | None |
| Life-interest trust | Nil (spouse exempt) | Low-med | Trustee fees |
| Discretionary trust | Nil | High | Trustee + 10-year charges |
When a trust wins
- Minor or vulnerable beneficiaries.
- Second marriages (protecting children from first marriage).
- Asset-protection against divorce or creditors.
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