woodland ownership

[martingarwood]

My wife and i currently own our 6.5 acre woodland near Goudhurst and are looking into transferring ownership to a trust of some kind, so that it is no longer part of our estate and also gets around some of the issues of what happens to it when we die. We are having initial conversations with solicitors about what needs to happen but before committing ourselves would like to know if others have done the same, what did they pay and how did they go about choosing trustees, beyond immediate family members that is. Are they any downsides we would need to consider too ?........ thank you.

[splodger]

my father has owned his small patch of woodland for about 25 years - and he has always wanted me to have it whens he goes. so with help from his solicitor, he has instructed that it goes into trust on his death - with me being the main trustee (an elderly relative being the other trustee)

this has been done primarily for my benefit and takes into consideration my own personal circumstances as well as my fathers

i also think there are many benefits to having the wood trusted (to me) for instance, i don't think inheritance tax applies .

as far as i am aware, as a trustee i will be able to have complete control over the land (as if i was the registered owner) whilst having the protection that a trust offers.

the cost of setting up the trust (via the solicitor) was between £500 and £1000 i think

[Dennis]

You may find that an Interest In Possession trust is recommended. By sleight of hand the trust property is outside of your estate, but you remain in control. Ingenious what lawyers can do . . .

[martingarwood]

thanks all..... helpful.

[ncrawshaw]

As far as I was aware, woodland is exempt from inheritance tax. It is not taken into account when the tax liability is calculated. I'm hoping this information is correct - please let me know if I'm wrong!

[Dennis]

Correct. HMRC explain the exemption in their IHT manual here: http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM04371.htm