Employee benefits trusts can raises major issues

EBTs as 'pension schemes' Employee benefit trusts (EBTs) can be used to provide pension benefits. The EBT deed in MacDonald (HMIT) v Dextra Accessories Ltd [2005] BTC 355 conferred upon the trustee a wide discretion over capital and income to pay money and other benefits (including pensions) to any of the named beneficiaries (the employees and their families) and a power to lend them money. An EBT is in the form of a discretionary trust and can be used not only to benefit the employee but also his family both during the employee's lifetime and after his death. The tax code for EBTs ...