Scottish Widows has warned that care should be taken with certain trusts when inheritance tax planning as they could now also fall into the inheritance tax minefield and Scottish Widows are asking them to be mindful of this.
Scottish Widows say that it may be better to set up several smaller trusts, than have one trust of £250,000. They say that although it maybe tempting to set up trusts on the same day, as the client is already with you and it saves time, it is better to allow two or three days between setting up the trusts and make sure everything is in order.
Our view
Given the shock changes to trust taxation announced by Gordon Brown in March 2006, there has been much debate about the best trusts to use for tax planning. Our advice ……….. take advice! This area is extremely complex and you need to contact us.