Published on: 14th September 2026

You need a Trust ~ Oh no I don't ~ Oh yes you do!

Mr & Miss are partners. They buy a house together. They agree to own 50% each. The house is valued at £450,000. Mr has £100,000 cash. Miss has £275,000 cash. Mr & Miss have two children together (Y&Z). Mr & Miss want “everthing to each other” when the first dies and then to Y&Z in equal shares when the second dies.

Mr is a big fan of AI and read about Inheritance tax allowances. AI tells him he and Miss each has allowances of £500,000. The brother of Mr is a client of Casey & Associates and referred Mr to us. We contacted Mr. He gave us an outline of his situation. We said “you need a Trust”. He said “Oh no I don’t”. We said “Oh yes you do”. The meeting turned into a bit of a pantomime.

Mr & Miss decided to stick with their AI “advice”. This is what happened when Mr died.

Assets = £325,000.

Allowances = £325,000.

Taxable estate = £Nil

Inheritance Tax Liability = £Nil

£325,000 goes to Miss.

Some time later Miss died.

Assets of £500,000 plus £325,000 from Mr = £825,000

Allowances = £500,000

Taxable estate = £325,000

Inheritance Tax Liability = £130,000

Inheritance Tax Liability across both estates = £130,000

If Mr & Mrs had taken the advice of Casey & Associates. This is what would have happened.

Mr dies first.

Assets = £325,000.

Allowances = £325,000.

Taxable estate = £Nil

Inheritance Tax Liability = £Nil

£325,000 goes to Trust.

Some time later Miss dies.

Assets = £500,000

Allowances = £500,000

Taxable estate = £Nil

Inheritance Tax Liability = £Nil

£825,000 to Y&Z.

Inheritance Tax Liability across both estates = £Nil

The Casey & Associates trust saved £130,000 Inheritance Tax. £130,000 more for Y&Z and £130,000 less for the taxman.

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

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