Inheritance Tax and multiple trusts – Piloting through the changes

A number of trusts, known as “relevant property trusts” holding assets within their trust funds escape a 40% IHT liability on the death of the estate planner, but for inheritance tax which is chargeable (during the estate planner’s lifetime and upon death) when assets enter the trust (entry charge at the lifetime rate of 20%), or are distributed to beneficiaries (exit/ proportionate charge) and also a time-based charge every ten years (the ten year anniversary/periodic charge) where no inheritance tax would otherwise be payable simply because distributions are deferred indefinitely. Continue reading →