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In some cases people don't know about the gifting rules, while there is also a general sense that "older generations tend not to want to lose control of their wealth". In this case, the assets are believed to have been placed into a trust for future generations of the family by the fifth Duke and Gerald's father, Robert George Grosvenor. ![]() In fact, anyone can "gift" money or assets into trusts and, as long as they then go on to survive for seven years, that wealth is no longer included in their estate for IHT purposes. In short, the fortune wasn't in Gerald's name and it won't be in Hugh's either. In theory, then, his son would pay tax on anything above £500,000.Ĭhas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, told the Financial Times this would give rise to an IHT bill of £3.34bn.īut that is not expected to be the case, says the Daily Telegraph, because "successive generations are 'trustees' rather than direct owners of the assets". 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