Bare trust gifts to minors stay as PETs

There has been concern among the industry that gifts to minors through absolute or bare trusts would be treated as CLTs, and therefore be liable for entry, exit and 10-yearly periodic charges, because the child can only access the trust when they reach 18 and not immediately. Bare trusts are commonly used to allow gifts to be made for minors who cannot easily hold property in their own name, and a bare trust ensures the funds can be appropriately managed until the child reaches adulthood. In January, Skandia claimed HMRC had decided gifts into trusts in these circumstances would be CLT,...