Trusts and IHT planning

The change in trust taxation in March 2006 came as something of a surprise, meaning it was back to t...

The change in trust taxation in March 2006 came as something of a surprise, meaning it was back to the drawing board to learn the nuances of the new regime. Once these are understood and the changes to the headline IHT-planning solution - typically offered by life companies - are applied, it becomes clear that at a high level, these 'solutions' and their target market remain the same. The difference is that the trust-wrapper choice was, by default, almost always a flexible power-of-appointment trust and, therefore, there was less of an argument to consider the choice of trust as a separat...