Introducing the Ultimate Advisor Tool for Quilters: Meeting the Rising Demand for Lifestyle Trusts

Quilter has released a new tool aimed at helping advisers prepare for the upcoming changes to inheritance tax (IHT) regarding pensions. They reported a remarkable 200% increase in lifestyle trusts established in 2024 compared to the previous year. This shows that people are thinking more about how to manage their wealth for the future.

So, what’s a lifestyle trust? It allows individuals to gift money into a trust, giving them the option to receive payments or any growth at specific future dates. This flexibility can help plan for long-term financial goals.

Rachael Griffin, a tax and financial planning expert at Quilter, notes that the financial landscape is changing. With pensions set to be subject to IHT starting in 2027, it’s crucial for advisers and clients to rethink how they structure their wealth. As Griffin puts it, “The demand for trusts is increasing as clients seek efficient ways to mitigate inheritance tax and maintain control over their financial futures.”

The new tool created by Quilter simplifies setting up and managing these trusts. It automatically schedules entitlements and tracks updates, making the process smoother for both advisers and their clients. Griffin also mentioned that this tool is just the first of several innovations coming soon to help with these financial shifts.

Interestingly, a recent survey by the Office for National Statistics revealed that 70% of individuals in the UK are concerned about how inheritance tax will affect their families. This statistic underscores the growing interest in trust solutions.

As more people turn to social media to share their thoughts, discussions around trusts and inheritance tax strategies are trending on platforms like Twitter and LinkedIn. Users are comparing notes and sharing experiences, showing a strong community focus on securing financial legacies.

For more details on inheritance tax and financial planning, check resources from the UK’s HM Revenue & Customs here.

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Pensions, Quilter PLC, FT Adviser