Be wary of family trusts that pledge to protect your legacy

Inheritance tax has always divided opinion, but one thing is certain: many families go to great lengths to minimise it.

- Iona Bain

From April 2027, that becomes more difficult. Unused private pension pots will fall inside the inheritance tax net for the first time. Against a backdrop of tighter rules and pre-budget anxiety, one product promising to sweep away liabilities and protect families from social care costs has gained traction.Family protection trusts are sold as a neat solution. Put your assets inside, appoint trustees and your estate will be shielded from fees and tax. It sounds disarmingly simple.