Reviewing trusts and wills

tax

New rules mean that most lifetime gifts to trusts are chargeable transfers, though in some cases this may mean that inheritance planning is actually simpler

Having consulted with the professional bodies for some years over the taxation of trusts without any reference to radical inheritance tax (IHT) changes, the Government dropped something of a bombshell in Budget Note 25 that was issued as part of the Budget process on 22 March 2006. Although the original proposals have been watered down, to an extent the changes enacted remain very significant and mean the provisions of almost all existing trusts and wills need to be reviewed. Historically, the IHT treatment of trusts depended on whether an interest in possession - the present right to pre...