'Dripfeeding' income into trusts could limit IHT

clock

Advisers should be aware trusts can be used to minimise the effects of IHT through a ‘dripfeed' approach as well as large one-off gifts, Standard Life says.

Earlier this year, HM Revenue & Customs published a research report outlining the motivating factors behind the use of trusts, which revealed very few people used trusts solely as tax-avoidance tools. Julie Hutchison, estate planning specialist at Standard Life, says there are many reasons why people don’t want to gift assets directly to other family members, which makes a trust appropriate. However, she argues a trust can be an ideal vehicle for estate planning for all sorts of reasons, as highlighted by HMRC, but she says until now people have been focusing on areas such as Discount...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

What advisers need to know as SpaceX fuels space investing interest

What advisers need to know as SpaceX fuels space investing interest

WisdomTree’s Mobeen Tahir unpacks the space economy theme

Professional Adviser
clock 14 August 2026 • 1 min read
How markets have developed in 2026 so far

How markets have developed in 2026 so far

'Active allocation does not mean constant trading or short-term market calls'

James Flintoft
clock 12 August 2026 • 3 min read
How sustainable funds have beaten the index this year

How sustainable funds have beaten the index this year

'ESG funds benefit from access to some of the livelier parts of the market'

Ian Aylward
clock 10 August 2026 • 3 min read