Budget proposals secure future of flexible trusts

The recent UK Budget proposals have caused great controversy among trust practitioners for the potentially harsh treatment they will dish out to trusts. Do they spell the death-knell for insurance-based discounted gift and other lump sum planning trusts? Far from it. If anything, they could become even more popular. From 22 March 2006, transfers into any flexible trust arrangement will become subject to the 'relevant property' regime that, before then, only applied to discretionary trusts. This will have three main tax consequences: l An immediate 'entry' tax charge of 20% on lifetime tr...