In the first of a two-part series, Jeremy Pearson weighs up the pros and cons of using bare and discretionary trusts
Many advisers are in a conundrum when recommending a trust to clients. Should they go for a simple, straightforward but accessible bare trust, or a sophisticated but complex discretionary trust? That is, a bare trust which will be a potentially exempt transfer but can be claimed by a beneficiary over 18 years old? Or a discretionary trust with flexibility of beneficiaries but with immediate inheritance tax (IHT) payable if an amount more than the nil rate band is invested? This is a rather simplistic synopsis of two multi-faceted arrangements, so it is important to compare th...
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