Family Holdover Gift Trust

The Family Holdover Gift Trust is a type of trust established in the UK for lifetime planning purposes. It is a type of Pilot Trust that is created outside of a Will and is not usually referenced in the Will. The purpose of the trust is to allow individuals to settle assets into it during their lifetime, which can be beneficial for various reasons.

One of the primary advantages of the Family Holdover Gift Trust is that it allows the Settlor to "holdover" any gains for Capital Gains Tax (CGT) purposes. This means that the Settlor can delay paying CGT until the assets are disposed of by the Trustees in the future. This can be a useful strategy for reducing the amount of CGT that needs to be paid.

To qualify for holdover relief, the Family Holdover Gift Trust must exclude the Settlor, the Settlor's spouse, and the Settlor's minor children.