Trust legislation changes. Following announcements made at the 2013 Budget in March, the government will consult on proposals to split the Inheritance Tax (IHT) nil rate band available to trusts with a view to delivering this change alongside simplification of trust calculations in 2015.
Currently, each trust you set up has its own nil rate band, meaning the 10 year tax charge of 6% is only levied on assets held over and above £325,000.
The proposed changes mean that the periodic charge will be applied to the total value of assets an individual settles into any number of discretionary trusts during their lifetime, above £325,000.
We may well have already set up trusts to optimise your estate and legacy planning, but if you would like to talk to us about your individual circumstances, please get in touch.