Timing of gifts into trusts 'crucial', says Skandia

As a result of changes introduced by the Finance Act 2006, Skandia says that by ensuring the most appropriate order for gifts is used, future taxes may be reduced or even negated. In general, the order in which gifts are made should be firstly exempt gifts, followed by loans to trusts, then chargeable lifetime transfers (CLTs), and then potentially exempt transfers (PETs). However, Skandia adds that each case must be examined individually and the size of the gifts taken into account. In particular, it says advisers should take care to ensure CLTs to discretionary trusts are made before ...