Important changes to accumulation and maintenance trusts mean that advisers need to be on the ball to ensure unnecessary charges are not incurred. Julie Hutchison outlines the options
For financial advisers involved in trustee investment work, particularly those working with law firms, accumulation and maintenance (A&M) trusts were formerly a popular type of trust. However, since the Budget 2006 A&M trusts are now becoming a historic footnote as changes to inheritance tax (IHT) have made them unattractive for future use with the change from PET to CLT status. For A&M trusts set up before 22 March 2006 we are already well into the two-year transitional period which lasts until 5 April 2008. This transitional period started with Budget Day in 2006 and is open to all pre-...
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