Save your clients IHT by looking beyond trusts

tax

It will no longer be possible to transfer unlimited funds into interest in possession, discretionary, and asset and maintenance trusts without an IHT charge, so investors will have to seek new mitigation strategies

New rules are making the use of trusts significantly disadvantageous in many circumstances after the March Budget curtailed the use of trusts in many forms of financial planning. This has the potential to affect many people, and in a number of cases it may now be preferable to make outright gifts of assets under a will rather than using trusts, according to accountants and tax planners Deloitte. Deloitte went on to say: "The changes are extremely far reaching and dramatically impact the valid non-tax use of UK trusts for passing assets to others in a responsible way." Most advisers have ...