How do you set up a trust fund for an inheritance?

Would my dad have to pay inheritance tax on money passed down to him in a private trust fund by my Nan....?

• Ok, so my nan passed away a month ago and left money in a private trust fund for my dad, and my uncle. My uncle has got a house left to him plus half of the £280,000 which is going to be split between him and my dad. My nan left a will but there was not enough money in the will to take it to probate, therefore the only money there is, is the money in the private trust fund (£280,000). What tax would my dad have to pay for his share of the fortune (1/2 of the £280,000) and would he have to pay inheritance tax, or capital gains tax..?

• Answer:

  Probate should be obtained (I think that is a legal requirement). Presumably the trust fund is outside the estate as the money has been given to your dad and uncle but held in trust. The house will be in the estate (and therefore the probate). You say there was not enough money in the will? It's not money it is assets (everything your nan owned). As someone said a solicitor knowledgeable in probate matters should be employed. CGT is only charged when assets inherited are sold at a profit. IHT comes out of the estate before the beneficiaries get it.