Wills & Tax Planning

February 26th 2020

We advised a client who wished to set up a trust for minor grandchildren in his Will.   Following recent legislative changes, a single trust or even three separate trusts of this nature would lead to ten yearly and exit charges.  We advised him to use pilot trusts set up on different days during his lifetime for two of the grandchildren, and a third trust in his Will for the last grandchild as well as gifts into the two pilot trusts by that Will.

Although on death there was a chargeable transfer in respect of the payments made to the grandchildren, none of the settlements were related and each benefited from the full nil rate band, thereby avoiding the ten yearly and exit charges.