New trust from SLI combines PETs with flexibility

Under the 2006 Finance Act, most transfers to flexible trusts became immediately chargeable to inheritance tax where they exceeded the settlor’s nil-rate band. SLI says its new product is unique in the retail, IFA and insurance markets. Neil Chadwick, technical officer at Scottish Life International, commented: “This trust offers investors the opportunity not only to reduce the value of their IHT estate but also the added flexibility of a fully discretionary trust. We had intended to make this available at an earlier date; however, we wanted to make sure that it was 2008 Finance Act friend...