Advisers urged to be 'on toes' over punitive trust charges

Amid an increase in the number of advisers setting up trusts to protect client assets, the Asset Protection Strategy has warned intermediaries risk exposing clients to unnecessary and potentially punitive periodic and exit tax charges. It said the tax charges arise when sizeable assets are placed in single trusts. Periodic charges can be up to 6% of the trust's value on the 10th anniversary where assets exceed the nil rate band, it added. In addition, a maximum proportionate exit charge of 6% applies when capital is paid out from such a trust between 10 year anniversaries. The Asse...