.png)
.png)
23 September 2024
Why trusts should be urgently reviewed.
It is widely expected that the Budget on 30 October may make some significant reforms to inheritance tax and capital gains tax. Such reforms could have a serious ongoing impact on existing trusts.
Advisers with trustee clients should suggest an immediate review of the trust to allow any planning action undertaken to be treated in accordance with current tax rules. This is particularly relevant where clients are already considering such actions.
Examples where early planning action may be appropriate include:
- making an absolute appointment under a current pre-2006 power of appointment trust to secure potentially exempt transfer (PET) treatment;
- making an absolute appointment under a discretionary trust to use the current IHT rules and rates and after due consideration on future CGT rates use CGT hold-over relief;
- releasing an outstanding loan under a loan (or gift and loan) trust where the settlor no longer needs ‘income’;...
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.
