IHT planning: Trust traps advisers should be aware of

A family trust may be an attractive proposition for those looking to reduce the inheritance tax (IHT) liability on their death while retaining some control over their assets. By appointing themselves trustees, they can decide which beneficiary should receive trust assets and when. However, there are many pitfalls which can upset the best-laid plans and these include practical matters and tax considerations. Practical considerations Assets must be transferred to a trust for it to come into existence; completing a trust deed alone does not suffice. If time is required to decide what thes...