Discretionary Trust Funds

hpg57

Hi all, following the budget I have been researching Trust Funds, as a way of passing on unused Pension.
It appears immensely complex, and with conflicting elements within it. One article I read stated it was subject to 6% "periodic tax" - what does that mean? It said 6% was more attractive than paying Inheiritance Tax.
In another I read that it is possible to set up a 'Living' Trust Fund so that the benefactor could access their assets i.e. draw on pensions, live in their home etc.
And in another I read that unused pensions would be subject to IHT?
Does anyone understand this and can expain?
Has anyone any experience of using or benefitting from a Trust Fund?

SiliconChip

You've posted on the Technical board, which is entirely the wrong place, I've reported your post to ask for it to be moved to a more appropriate board.

Heedtheadvice

Yes wrong board. Well done 'chips'.

but correct statement "It appears immensely complex..". It is.

Only worth it if you have a large financial asset ( owing to costs etc, ) take professional advice setting up ( many a pitfall) and pay for it's 'maintenance' or are competent to ensure you have a trustee to follow all the trust laws and do the trust tax returns...