Trusts: Do you know all the options?

Before the 2006 Budget, intermediaries tended to recommend three types of popular trust: – bare, discretionary and interest in possession to their clients for IHT mitigation purposes. Interest-in-possession (IIP) trusts were by far the most popular due to their combination of flexibility and tax treatment as potentially-exempt transfers. However, since that Budget, new gifts into pre and post-Budget interest-in-possession trusts mean that the trusts are treated for tax in the same way as discretionary trusts, making discretionary trusts the more preferable option going forward. Import...