What advisers need to consider on multiple trusts

Setting up trusts on different days has proved a popular wealth planning strategy for many advisers and clients over the years. This strategy, known as the Rysaffe principle, can be extremely tax-effective as it reduces, or potentially negates, any liability to a ten-year periodic charge on the trusts. The government issued a consultation paper in 2014 on the simplification of trust taxation and proposed a single nil-rate settlement band on trusts. This new proposal would have the effect of only allowing one trust to benefit from the nil-rate band, effectively preventing multiple t...