.png)
.png)
The inheritance tax implications of pension trusts
KEY POINTS
- Inheritance tax may be payable by the trustees of a by-pass trust.
- Nil rate band applicable to different trusts set up by one taxpayer.
- Accrued benefits from several trust-based pension schemes.
- Ten-year charges must be reported to HMRC.
- Rysaffe planning is under threat.
The inheritance tax treatment of trusts that hold money paid out from a pension scheme on the death of a member frequently creates difficulty for practitioners.
These “by-pass trusts” come into existence as a result of the pension scheme trustees making a payment either to an integrated trust where the scheme rules say that the trustees must pay death benefits to a trust that has been declared by the member or to a pilot trust usually set up by the member for...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
