Why ongoing advice on trusts is essential
Inheritance tax planning today can be a little complicated and so advice on trusts is essential. The increased flexibility within schemes, the integration with pensions advice, the role of trustees and the need for regular investment reviews, are all important.
Most reasonably wealthy people these days prefer solutions which are more sophisticated than the simple selling of packaged products.
The combination of a bespoke, highly flexible discretionary or reversionary trust, containing a directly invested portfolio of collectives, run by an investment manager with strong risk controls to meet the requirements of the trustees, is now the minimum acceptable standard.
Loans or appointments to beneficiaries from the trust are very useful which are unlikely to ever be challenged by HMRC as long as everything is transparent and carefully documented.
Professionally drafted and managed trusts of this nature are complex in nature and not simply ‘stack it high, sell it cheap’ packaged products. There is always a real need to ensure that the detailed drafting of trust itself is as watertight as possible and flexible enough to cope with both the settlor’s and beneficiaries changing circumstances.
To help secure that uncertain future and to ensure that the advice on trusts and investments are both managed and administered properly, it is essential that the trustees have a strong ongoing support structure to keep up to date in any changes in legislation and market movements.
Dealing with the investments, the changing needs of beneficiaries, adding further beneficiaries to reflect changing family circumstances, keeping good records, including trust accounts, trustee considerations and decisions, and dealing with any tax returns, are some of the more important tasks. All of these require ongoing support.
It is not only the 40% IHT saving which is relevant but ensuring the needs of all parties to the trusts are met on an ongoing basis which is important.
The small relative cost of paying a professional fee for experienced help and advice on trusts to ensure you accrue these benefits is always money well spent.
If you have an Inheritance tax problem please call for a chat to discuss how we can help