Trust Funds for IHT planning

John_Pierpoint

......................but beware HMRC is about to change the rules for trusts !

In particular there is this proposal to kill off pilot trusts:

The nil-rate band should be split by
the number of relevant property
settlements which the settlor has made.
This will alleviate the risk that settlors
might seek to fragment ownership
of property across a number
of trusts to maximise the availability
of reliefs or exempt amounts.

http://www.tax.org.uk/Resources/CIOT/Documents/2013/06/130531%20IHT%20-%20Simplifying%20Charges%20on%20Trusts%20-%20the%20next%20stage.pdf

insured

John_Pierpoint wrote: »

......................but beware HMRC is about to change the rules for trusts !

In particular there is this proposal to kill off pilot trusts:

The nil-rate band should be split by
the number of relevant property
settlements which the settlor has made.
This will alleviate the risk that settlors
might seek to fragment ownership
of property across a number
of trusts to maximise the availability
of reliefs or exempt amounts.

http://www.tax.org.uk/Resources/CIOT/Documents/2013/06/130531%20IHT%20-%20Simplifying%20Charges%20on%20Trusts%20-%20the%20next%20stage.pdf

You are right that there are plans to change the taxation of trusts, in particular the restriction of the availability of the nil rate band.
However, most practitioners believe there is still sufficient scope outside of the consultative document to make some sort of planning worthwhile.
Secondly, if you continually concerned yourself with future changes you wold never do any tax planning.