Published on: 24th August 2026

Reducing Inheritance Tax with the Casey & Associates Wealth Protection Trust Scheme

For many families, the family home represents their largest asset. As property values continue to rise, more estates are becoming subject to Inheritance Tax (IHT), leading many homeowners to explore legitimate and effective estate planning solutions.

The Casey & Associates Wealth Protection Trust Scheme has been designed to help married couples mitigate potential Inheritance Tax liabilities while maintaining control and protection over their assets.

Understanding Inheritance Tax

Every individual currently has a Nil Rate Band allowance of £325,000 before Inheritance Tax becomes payable. Married couples and civil partners can generally combine their allowances, giving a potential joint threshold of £650,000.

Assets above the available allowances may be subject to Inheritance Tax at a rate of 40%, including the value of the family home, savings, investments and other assets.

With fewer opportunities available to reduce Inheritance Tax, particularly where wealth is tied up in residential property, many families are looking for strategies that can help preserve more of their estate for future generations.

 
How the Wealth Protection Trust Scheme Works

 
HM Revenue & Customs recognises that a share in a jointly owned property may not be worth the same as a straightforward percentage of the property's full market value. This is because:

• A part-share of a property can be difficult to sell on the open market.
• The co-owner may continue to occupy the property, reducing the attractiveness of the share to potential buyers.
• A minority ownership interest often commands a lower market value than its mathematical proportion of the whole property.

The Casey & Associates Wealth Protection Trust Scheme is designed to take advantage of these accepted valuation principles. Through carefully drafted Wills, a small proportion of the property is gifted into a Wealth Protection Trust on the first death of a couple. The trust becomes a co-owner of the property alongside the surviving spouse. As a result, when the estate is valued on the second death, it may be possible to claim a reduction in the value attributed to the property for Inheritance Tax purposes.

A Practical Example**

Consider Mr and Mrs Brown.

They own:

• A family home worth £850,000
• Additional assets worth £100,000

Their total estate is therefore valued at £950,000. Like many married couples, they wish everything to pass to the surviving spouse on first death. Under normal circumstances, no Inheritance Tax is payable on the first death due to the spouse exemption. However, on the second death, the estate would potentially be liable for approximately £120,000 of Inheritance Tax.

Introducing the Wealth Protection Trust

Casey & Associates prepares Wealth Protection Wills for Mr and Mrs Brown. Under the arrangement, 10% of the family home passes into a Wealth Protection Trust on the first death. The trust then becomes a co-owner of the property. When the surviving spouse later passes away, the executors may be able to claim a valuation discount against the property's value due to the trust's ownership interest.

Using a discount of 15%, the estate valuation is reduced from:

£850,000 to £722,500

This reduces the potential Inheritance Tax liability from:

£120,000 to £69,000

Potential Tax Saving

Inheritance Tax before planning: £120,000

Inheritance Tax after planning: £69,000

Potential saving: £51,000

This means that an additional £51,000 can be preserved for the family's beneficiaries rather than being lost to taxation.

** For simplicity this example ignores the Main Residence Nil Rate Band Allowance.

Additional Asset Protection Benefits

The Casey & Associates Wealth Protection Trust Scheme can also be used alongside a Life Interest in Property Trust. This can provide valuable protection for up to 50% of the family home between first and second death, helping to ensure that assets ultimately pass to the intended beneficiaries while still allowing the surviving spouse to remain in occupation of the property. The combination of both planning strategies can offer significant benefits for families seeking to protect wealth, preserve inheritance and maintain flexibility for future generations.

Is the Scheme Right for You?

The Casey & Associates Wealth Protection Trust Scheme is particularly relevant for homeowners whose estates may exceed available Inheritance Tax allowances and whose wealth is concentrated in residential property. As every family's circumstances are different, professional advice should always be obtained before implementing any estate planning strategy. The suitability and effectiveness of any arrangement will depend on individual circumstances, property ownership structures and prevailing tax legislation.

Protecting Your Family's Wealth

Careful estate planning can make a substantial difference to the amount ultimately received by your loved ones. By combining asset protection with legitimate Inheritance Tax planning, the Casey & Associates Wealth Protection Trust Scheme offers families an opportunity to preserve more of their hard-earned wealth for future generations.

If you would like to speak with one of our Consultants to discuss any of the issues raised in this article or any other Estate Planning topic please telephone 01732 868 190 or click here.

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However, if you wish to give instructions to one of our Consultants and you feel that you can only do this at a Face to Face meeting then we are offering, at our Consultant’s discretion, a limited number of Face to Face appointments in most of the areas we normally cover.

To arrange an appointment please telephone 01732 868190 or click here.

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