5 Aug 2019
It's simple to explain to a client when there's no Inheritance Tax (IHT) to pay at outset on a lifetime gift. But can you explain to a client what the ongoing IHT implications are of using a discretionary trust? The relevant property regime is complex and if you don't understand it, you could inadvertently cause a tax charge, or miss an opportunity to avoid one.
30 minutes of structured CPD
The articles written by Prudential below cover:
To get your CPD certificate after you've read the articles, you need to visit Prudential’s Test Centre and take the test.
Article one: Discretionary trust taxation
A discretionary trust is one where the trustees can accumulate income or pay it at their discretion. Normally the trustees can choose from a wide class of beneficiaries (excluding the settlor) to whom they distribute the trust funds.
Article two: Gifting and Inheritance Tax
Learn about Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs), their interaction with each other and the impact these gifts have on IHT.