In the United Kingdom, inheritance tax (IHT) can have a considerable impact on the value of estates left to beneficiaries. With the present IHT rate of 40% for estates worth more over £325,000, many families face significant tax payments. However, using trusts with services like nope.tax can significantly reduce these responsibilities.

Trusts are legal arrangements in which one person holds assets for the benefit of another. Individuals who place assets in a trust might minimise the value of their estate that is liable to IHT.

Discretionary trusts, for example, allow trustees to manage and distribute assets in accordance with the needs of the beneficiaries, giving them flexibility and the possibility for tax savings. Similarly, establishing a life insurance trust can ensure that the payoff does not become part of the taxable estate, lowering IHT.

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