Trusts Flashcards
1
Q
Trusts
Nominations Revokable Usually spouse/kids Discretionary Update any time Free iht Beneficiary> Nominee>successor keep our estate many years
Personal discretionary
Lump sum assigned trust
Trustees decide who receives
Cannot be revoked
Spousal by pass trust Avoids u spent benefit accruing in estate of 2nd spouse to die Create disc trust with small gift Complete expressions wish Pays into trust Trustees discretion who pays no iht Pre 75 death no charge, post 45% Doesn’t form beneficiaries estate on death
Deed variation
Skip generation -to grandkids for example to to avoid worsening iht issue
Only vary once
Beneficiary losing needs to agree
Needs to state original will and distribution and how vary
A
Bare trust
Any xfer of value bare is a PET
Inside estate iht
Liable iht failed PET
Interest in possession trust
- CLT
- taxed same as dis trust
Will trust
- immediate post death interest
- can give 2nd spouse life interest in possession
- 1st spouses NRB & RNRB passes to 2nd spouse use against value of estate
- can only use if tenants in common so would need to change house
Absolute trust Cannot change bens Can demand assets No hmrc reporting No 10 year exit No protection bankruptcy or divorce PET
Discretionary CLT-20% over NRB Can change Bens Cannot demand assets Hmrc report of gift & taxation 10 year exit Protection on divorce & bankruptcy
