Children & Grandchildren
Help future generations while creating more structure around how assets are managed.
Protecting your family, your property and your legacy.
Cardiff based • Supporting families across England & Wales
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Lifetime Gifts • Children • Grandchildren • Family Wealth
Gift Trusts England & Wales
Lifetime gifting for families who want to pass wealth
to the next generation with greater structure while
understanding the legal, tax and practical consequences.
Gift Trusts can be considered where you want to give assets during your lifetime but do not want to make a completely unrestricted gift.
Evans Legacy Planning helps families across England and Wales understand Gift Trusts, direct gifts and wider lifetime gifting options in plain English.
Gift Trusts Lifetime gifting Children & grandchildren Inheritance planning
Suitability First Trust or simpler gift?
Plain English Understand the options clearly
Family Focused Children & future generations
Clear Fees Costs explained before proceeding
Payment Options Ask about current options
Gift Trusts explained
What Is a Gift Trust and How Does It Work?
A Gift Trust is a Trust arrangement used during your lifetime to place suitable assets under the control of trustees for selected beneficiaries.
Rather than giving the asset directly to somebody, the Trust provides a legal framework around how it is managed and who can benefit.
This may be useful where you want to help children, grandchildren or other family members while retaining greater structure around the gift.
Official GOV.UK Trust guidance →The Main People Involved
Settlor The person creating the Trust and transferring
assets into the arrangement.
Trustees The people responsible for managing the Trust
according to its terms and their legal duties.
Beneficiaries The people intended to benefit from the
Trust now or in the future.
How Gift Trust planning works
From Your Assets to Future Generations
Step 01
You Make the Gift
Suitable money or assets are transferred into the Trust arrangement.
→
Step 02
Trustees Manage It
Trustees manage the assets according to the Trust terms.
→
Step 03
Family Benefits
The selected beneficiaries can benefit in accordance with the arrangement.
Lifetime family planning
Why Families Consider Gift Trusts
The objective should come first. The Trust structure comes afterwards.
Younger Beneficiaries
An outright gift may not be appropriate where a beneficiary is still young.
Vulnerable Beneficiaries
Some beneficiaries may need additional support rather than receiving assets outright.
Family Wealth
Lifetime gifting can form part of a wider strategy for passing wealth between generations.
Greater Structure
Trustees can manage assets within the terms of the Trust instead of an unrestricted gift.
Inheritance Planning
Lifetime gifts should be considered alongside your Will and wider estate position.
Give with purpose
Giving Assets Away Is a Significant Decision
Lifetime gifting can be valuable, but once an asset has genuinely been given away you may no longer own or control it personally.
Before making a substantial gift, it is important to consider what you may need yourself later, who should benefit and whether a direct gift or structured Trust is more appropriate.
An important choice
Direct Gift or Gift Trust?
These can have very different legal, practical and tax consequences.
Direct Lifetime Gift
A direct gift transfers ownership directly to the person receiving it.
- Can be relatively straightforward
- The recipient normally takes ownership directly
- You may lose control of the asset
- Tax treatment depends on the circumstances
- Large gifts should be documented carefully
Gift Into Trust
Assets are transferred into a legal Trust structure and managed by trustees.
- Can provide greater structure
- Trustees manage the assets
- Beneficiaries benefit under the Trust terms
- Different tax rules can apply
- Reporting and administration may be required
Inheritance tax & lifetime gifts
What About PETs and the 7-Year Rule?
A Potentially Exempt Transfer — often shortened to PET — can apply to certain lifetime gifts made directly from one individual to another.
Gifts into Trusts can be treated differently, which is why a direct gift should not automatically be treated in the same way as a Trust gift.
The tax position can depend on the type of gift, Trust structure, value transferred, earlier gifts, available allowances and individual circumstances.
GOV.UK inheritance tax and gifts → Direct Gifts Certain gifts made directly to individuals
can have different inheritance-tax treatment
from gifts made into Trust.
Gifts Into Trust Trust transfers may fall under different
inheritance-tax rules depending on the structure.
Earlier Gifts Matter Previous lifetime gifts can sometimes affect
later inheritance-tax calculations.
Specialist Advice Larger or more complex transfers may require
specialist tax, legal or financial advice.
Helping future generations
Gift Trusts for Children & Grandchildren
Families often want to help the next generation without simply handing over a substantial asset immediately.
Education & Future Costs
Families may want funds available for future education or other significant needs.
First Property
Lifetime planning may be considered where parents or grandparents want to help younger generations in the future.
Younger Children
Trust arrangements can provide a structure where direct ownership would not yet be suitable.
Vulnerable Beneficiaries
Some people may need more careful support or management around inherited or gifted assets.
Family Wealth
Gifts can form part of a longer-term strategy for passing family wealth between generations.
Fairness Between Family
Where substantial lifetime gifts are made, the wider impact on other beneficiaries and the Will should also be considered.
Lifetime Gifting Checker
Is Gift Trust Planning Worth Discussing?
Tick anything that applies to you. This is designed to identify useful planning questions rather than recommend a particular Trust.
Your result
Tick any relevant points above.
Plan before you gift
Our Gift Trust Planning Process
Understand what you want to achieve before deciding how to transfer the assets.
01
Understand Your Goals
Discuss what you want to give, who should benefit and why.
02
Review Your Position
Consider your assets, income, future needs and existing planning.
03
Compare the Options
Understand direct gifting, Trust planning and relevant alternatives.
04
Consider Tax & Duties
Identify where tax, legal or reporting issues need further advice.
05
Coordinate Your Estate Plan
Make sure lifetime gifting works alongside your Will and wider legacy plan.
Good administration matters
Keep Clear Records of Lifetime Gifts
Future executors and advisers may need accurate information about substantial gifts.
Date Record when the gift was made.
Recipient Record who received the gift.
Value Record the value transferred.
Type of Gift Record whether it was cash,
property or another asset.
Responsible lifetime planning
Gift Trusts Are Not an Automatic Tax-Avoidance Solution
A Gift Trust should not be promoted as a guaranteed way to avoid inheritance tax or other future liabilities.
Transferring assets into Trust can create tax, reporting, administration and trustee responsibilities. The tax treatment depends on the structure and individual circumstances.
It is also important to consider whether you can genuinely afford to give the asset away and whether you expect to continue benefiting from it.
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Flexible ways to proceed
Ask About Finance & Payment Options
Ask the Evans Legacy Planning team about finance or flexible payment options currently available for suitable estate-planning services.
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Cardiff based • England & Wales
Gift Trusts & Lifetime Gifting Across England & Wales
Evans Legacy Planning is based in Cardiff and supports suitable families throughout South Wales and wider England and Wales.
Telephone and video appointments can make it easier to review lifetime gifts, Trust planning and wider inheritance arrangements.
Cardiff & South Wales
Newport, Swansea & Bridgend
Rhondda Cynon Taf & surrounding areas
Bristol & the West
Suitable clients across England & Wales
Joined-up family planning
Lifetime Gifting Should Fit Your Wider Estate Plan
Gift Trust FAQs
Common Questions About Gift Trusts
What is a Gift Trust?
A Gift Trust is a Trust arrangement used during
your lifetime to transfer suitable assets into
Trust for selected beneficiaries.
Why use a Gift Trust instead of giving money directly?
A Trust may provide greater structure around
how assets are managed and how beneficiaries
can benefit. A direct gift can be simpler but
usually gives the recipient direct ownership.
What is a Potentially Exempt Transfer or PET?
A PET is a term used in inheritance-tax rules
for certain lifetime transfers, commonly gifts
made directly from one individual to another.
The treatment of gifts into Trust can be different.
Does the 7-year rule apply to every Gift Trust?
No. Different types of lifetime gifts and Trusts
can receive different inheritance-tax treatment.
You should not assume that every transfer into
Trust follows the same rules as a direct gift.
Can Gift Trusts be used for children or grandchildren?
They can be considered where a parent or grandparent
wants to provide assets for younger family members
while placing more structure around how those
assets are managed.
Do Gift Trusts avoid inheritance tax?
Not automatically. The tax position depends on
the type of Trust, the assets transferred,
their value, previous gifts and the individual's
wider circumstances.
Can I still use an asset after gifting it?
Continuing to benefit from an asset after
supposedly giving it away can create additional
legal and tax issues. This should be considered
carefully before making the gift.
Should I keep records of gifts?
Yes. Clear records of substantial lifetime gifts,
including dates, values and recipients, can be
very helpful for future estate administration.
Do I still need a Will if I make lifetime gifts?
Lifetime gifting and Will planning perform different
roles. Your remaining estate still needs appropriate
planning for what should happen after death.
Can Evans Legacy Planning review gifts I have already made?
A Family Legacy Review can help identify previous
gifts that may be relevant to your wider estate
planning and where specialist advice may be required.
Are finance or payment options available?
Ask the Evans Legacy Planning team about finance
or flexible payment options currently available
for suitable services.
Does Evans Legacy Planning help outside Cardiff?
Yes. Evans Legacy Planning is Cardiff based
and supports suitable clients across South Wales
and wider England and Wales.
Complimentary Family Legacy Review
Thinking About Giving Wealth to Your Family?
Before transferring significant money or assets, understand the choices available and how they could affect you, your beneficiaries and your wider estate plan.