The following Private Client guidance note Produced in partnership with Emma Haley of Boodle Hatfield provides comprehensive and up to date legal information covering:
FORTHCOMING CHANGE: As originally announced at Autumn Budget 2017 and followed up by written statement after Spring Statement 2018, plus an announcement in Budget 2018, the government ran a consultation on the taxation of trusts from 7 November 2018 to 28 February 2019, inviting views on the principles of transparency, fairness and simplicity that it believes should underpin the taxation of trusts. In response, in July 2019, the Office of Tax Simplification issued its second report on inheritance tax. See also the report published by the All-Party Parliamentary Group for Inheritance & Intergenerational Fairness in January 2020 recommending the adoption of a new inheritance tax regime. See also the research exploring the use of trusts which was also published on 7 November 2018. See News Analysis: Exploring the consultation and review on the taxation of trusts.
A pilot trust is a lifetime trust set up with a nominal amount (typically a small sum of cash such as £10) which does not become active until further funds are added subsequently. It is very common to establish a trust in this way. The initial sum gets the trust started so that it is ready to accept the main assets at a later date.
Many trusts start off as pilot trusts. The main trust assets may be added fairly
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