Trouble ahead? IHT changes could trigger discretionary trust problems

The government's decision to introduce a new family home allowance allowing homeowners to pass on their property or some of its value to the next generation without paying inheritance tax (IHT) will require a change of approach on the use of discretionary trusts. With effect from April 2017, the government is gradually introducing a family home allowance or main residence nil-rate band, which will eventually be worth an additional £175,000 per person by 2020/21. Its introduction allows married couples and civil partners to pass on assets worth up to £1m including the main residence to...