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A trust was established before the major changes to the tax regime that were introduced in FA 2006. However, the terms of that trust have recently been changed
We have a client who had set up an interest in possession trust for his only daughter just before the FA 2006 Sch 20 changes were introduced.
The trust was due to vest on the daughter’s 30th birthday during this past year. However the client was not sure that the daughter was ready to take outright ownership of the assets. It has only recently come to our attention that he has arranged with his fellow trustees to postpone the vesting of the assets for five years.
We do not act for the trust and have no particular specialist knowledge of trust taxation; however it occurs to us that any amendments made to a “pre-March 2006” trust after October 2008 may have brought an adverse inheritance tax consequence.
The value of the trust’s assets are considerably in excess of the inheritance tax nil-rate band. If readers consider...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
