What advisers need to consider on multiple trusts

What advisers need to consider on multiple trusts

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Greater clarity is needed on multiple trusts. But until the government finalises its position, advisers have several factors to consider, writes Rachael Griffin

Setting up trusts on different days has proved a popular wealth planning strategy for many advisers and clients over the years. This strategy, known as the Rysaffe principle, can be extremely tax-effective as it reduces, or potentially negates, any liability to a ten-year periodic charge on the trusts. The government issued a consultation paper in 2014 on the simplification of trust taxation and proposed a single nil-rate settlement band on trusts. This new proposal would have the effect of only allowing one trust to benefit from the nil-rate band, effectively preventing multiple t...

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