Neil Macleod explores IHT, discretionary trusts and the relevant property regime in his latest article for Professional Adviser...
Trusts can be used for a wide variety of purposes but inheritance tax (IHT) mitigation remains one the main reasons a trust is created. It's not surprising that often these trusts are set up on a discretionary basis as this gives the settlor control over who benefits, as well as offering some protection over the gift. The downside is that discretionary trusts are subject to the "relevant property regime" and potentially, subject to entry, periodic and exit charges. This is often referred to as the "cost of control". Some clients and advisers are put off by the thought of IHT charg...
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