Discretionary trusts will remain important despite IHT changes

The chancellor, Alistair Darling, has made a few waves. He has certainly replied to the Conservative's recent headline-grabbing pledge to raise the inheritance tax (IHT) threshold. When Darling stood up to make his first pre-Budget speech, few predicted he would double the IHT nil-rate band for couples. The new rules mean if a husband dies, and he does not make use of his own individual nil-rate band, when his widow dies, she will be able to use both her nil-rate band and that proportion of her late husband's that was unused. This would effectively give her a 'double' nil-rate band of £60...