Scottish Life Int launches new trust

The changes introduced in the 2006 Finance Act in respect of the IHT treatment of trusts largely negated the use of flexible trusts. This is because the transfer to the trustees becomes immediately chargeable to IHT where the value exceeds the Settlor's available nil rate band rather than being potentially exempt. However, through the new trust, Scottish Life International can offer investors an effective way of reducing their IHT liability and at the same giving their trustees the discretion to provide for a wide range of beneficiaries rather than creating absolute entitlements which can...