Estate Planning Services

Trusts are a powerful tool for estate planning, but require careful structuring. The most suitable type depends on your objectives:

• Discretionary trusts: Offer flexibility for the trustees to distribute income and capital to beneficiaries at their discretion
• Life interest trusts: Provide income to one person (often a spouse) with capital ultimately passing to others
• Bare trusts: Simple structures where beneficiaries have absolute entitlement
• Charitable trusts: Offer significant tax advantages if you have philanthropic objectives

ARK’s adviser will help you assess which structure best aligns with your family circumstances, tax position and long-term objectives. An incorrect choice can trigger unnecessary taxes or create administrative complexity.

This is a common concern, particularly for clients with blended families or second marriages. A life interest trust is often used: your spouse receives income and the use of capital during their lifetime, but upon their death, the remaining capital passes to your children rather than to your spouse’s estate.

This approach protects your spouse’s security while ensuring your children ultimately inherit in accordance with your wishes. The key is to provide clear trust documentation that your spouse understands the arrangements.

Yes, lifetime gifting is an integral part of IHT planning. You have several options:

• Annual exemption: You can gift up to £3,000 per tax year with no IHT implications
• Gifts out of surplus income: Regular gifts from income (not capital) are exempt if you maintain your usual standard of living
• Potentially Exempt Transfers (PETs): Larger gifts become exempt if you survive seven years
• Exempt gifts: Gifts to your spouse, civil partner,o r charity are always exempt

The strategy needs to balance reducing your estate with retaining sufficient capital to support your security and lifestyle in retirement.

Estate plans should be reviewed regularly, ideally annually or whenever there is a material change in your circumstances. Essential triggers for review include:

• Changes to tax legislation (allowances, rates or reliefs)
• Significant changes in asset values or business circumstances
• Marriage, divorce, birth of children or grandchildren
• Death of a named executor, trustee or beneficiary
• Relocation to a different country or jurisdiction
• Significant fluctuations in market values affect your overall position

ARK includes regular review as part of its ongoing service to ensure your arrangements remain aligned with your objectives and current legislation.

Without an estate plan, several consequences can arise:

• Your estate will be distributed according to intestacy rules, not your wishes
• Your family faces unexpected IHT bills, potentially forcing asset sales to pay tax
• Distribution of your estate will take longer, often 12–24 months or more
• Without a power of attorney, your family may face legal complications if you lose capacity
• Probate and legal costs will be higher without clear instructions

Planning early means your loved ones inherit according to your wishes whilst paying the minimum necessary tax.

Yes, several exemptions and reliefs can significantly reduce your IHT liability:

• Spouse exemption: Leave your entire estate to your spouse with no IHT
• Charity exemption: Gifts to charity are entirely exempt from IHT
• Business Relief: Up to 100% relief available on certain business assets
• Agricultural Relief: Relief on agricultural property passed on to heirs
• Charity rate: If you leave 10% of your net estate to charity, the IHT rate drops from 40% to 36%

Your Ark adviser will review your circumstances to identify which exemptions and reliefs apply to your situation.

Probate is the legal process through which your will is recognised, and your estate is settled. The typical timeline is 12-24 months, depending on complexity and the need to resolve disputes or sell assets. Key stages include:

• Grant of Probate (typically 4-16 weeks)
• Identification and valuation of assets (ongoing)
• Payment of debts, taxes and IHT (must be paid before assets are distributed)
• Distribution to beneficiaries (final stage)

Having a clear estate plan significantly reduces delays and costs. ARK can help coordinate with solicitors and executors throughout this process.