Tax treatment of interest in bare trusts
Bare interest trusts are limited in their scope and as such do not in themselves attract inheritance tax but rather the value held within the trust will be treated as belonging to the beneficiary for his/her personal inheritance tax purposes. Tax may, however, be due if following the creation of the trust the creator dies within 7 years. It is, therefore, very important that people who wish to create these simple trusts obtain specialist advice before doing so.
For anything further, one of our specialists would be delighted to meet you either in our office or in your own home to talk through your requirements and answer any questions. Please contact us at any time.