IHT: remembering… the Rysaffe principle

The first thing to say, and this is a very important aspect to emphasise, is the Rysaffe principle makes no difference whatsoever at the time discretionary trusts are set up. The potential inheritance tax (IHT) saving arises at the ten-yearly anniversaries of the trusts commencing, when they are assessed for a periodic charge (known as the principle charge). Rysaffe is actually a Channel Islands-based trust company. It had two clients, both by the name of Utley, who were the principal shareholders in their own private company and used the services of Rysaffe Trustee Company (CI) Ltd. ...