Inheritance tax and cash gifts

James_Trimby

Hi Senior Aware of trusts but too long since did the tax exams so involve experts where needed! I agree with your comments though the trust tax position on income/growth is not that favourable nowerdays plus cost of formation and maint (unless family prepared to do it) put me off a bit. BUT agree for larger sums they still have their uses.

SeniorSam

James_Trimby wrote: »

Hi Senior Aware of trusts but too long since did the tax exams so involve experts where needed! I agree with your comments though the trust tax position on income/growth is not that favourable nowerdays plus cost of formation and maint (unless family prepared to do it) put me off a bit. BUT agree for larger sums they still have their uses.

Hi James,

formation should not cost anything at all if done by an IFA as it's built in and if the Trust only holds an investment bone, which is usual, there is really no maintenance at all for the loan trust. Also no 'income' to the trust, just growth, so not tax other that the income & CGT on growth in the bond which is the same on all bonds, trust or not.

Additionally no necessity for meetings of trustees other than occassional fund switches from time to time.

Sam