It is a complicated name, and it is rarely discussed. It's probably because we don’t want to discuss it, and the tax-man wouldn’t like us to discuss it. It is basically where the general public pays I.H.T. or Inheritance tax. The tax is now part of the estate and could cause our future generation to pay the right tax on inheritance.
The situation becomes worse as time passes. Your children may leave a larger estate, which could cause your grandchildren to have to pay Inheritance tax. They are paying tax on money and goods on which Inheritance Tax is already levied.
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They are basically paying tax on a legacy for which taxes have already been paid. It is called the Generational Inheritance tax. It's a cycle that repeats itself. It happens over and over again until it is stopped.
To break the cycle, it is important that each person creates a Last Will and Testament. Include a Family Trust in your Will. You can start such a trust with the only PS10. This means you will need two Wills and two Family Trusts. You should make sure that your Family Trust contains everything that is yours. If you arrange to have the property in a Tenancy in Common, it can also include half of the house.
Your family Trust can be made available to your natural children. The Trust's contents are not yours anymore. They belong to the Trustee (one of whom is you) and are passed on to the beneficiaries.
The Trust can be transferred to your children upon your death. They will receive their inheritance immediately, without any tax, and there won't be any probate or the reading of Wills. Because the Family Trust's contents are exempted from Inheritance Tax assessment, they are not liable.
Everyone could make a Will and start a Family Trust to end the Generational Inheritance tax.