Taming IHT: The relevant property regime and discretionary trusts

IHT mitigation remains a driver for the creation of trusts

clock • 6 min read

Neil Macleod explores IHT, discretionary trusts and the relevant property regime in his latest article for Professional Adviser...

Trusts can be used for a wide variety of purposes but inheritance tax (IHT) mitigation remains one the main reasons a trust is created. It's not surprising that often these trusts are set up on a discretionary basis as this gives the settlor control over who benefits, as well as offering some protection over the gift. The downside is that discretionary trusts are subject to the "relevant property regime" and potentially, subject to entry, periodic and exit charges. This is often referred to as the "cost of control". Some clients and advisers are put off by the thought of IHT charg...

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 Tax planning

Why cross-border financial planning is like puzzle-solving

Why cross-border financial planning is like puzzle-solving

'Financial planning isn't about chasing returns. It's about how everything fits together'

Matt Byrne
clock 12 November 2026 • 5 min read
Pension IHT reform: Awareness is not the same as readiness

Pension IHT reform: Awareness is not the same as readiness

'Quite a few firms seem to be caught somewhere between awareness and implementation'

Jamie Ponting
clock 11 November 2026 • 7 min read
Pension IHT reform will change more than estate planning

Pension IHT reform will change more than estate planning

Rethinking the ‘pension last’ approach

Hugi Clarke
clock 06 November 2026 • 4 min read