Trusts

The future of trusts in the light of proposed inheritance tax reforms and other recent developments

Advice is required on how ITTOIA 2005, s 629 taxes the trust income on the settlor of a parental discretionary trust and how payments to the children are matched against the “available trust income”

Advantages and pitfalls of dividends paid to spouses and civil partners

Gilchrist (as trustee of the J P Gilchrist 1993 Settlement) v CRC, Upper Tribunal (Tax and Chancery Chamber)

Under a will trust the settlor’s partner was provided with a residence and annuity for the rest of her life. Legacies were also to be paid to grandchildren on their 25th birthdays. The cash funds have been exhausted

There is uncertainty as to whether a form R185 (Trust Income) or a form R185 (Settlor) should be issued when a settlor is the beneficiary of an interest in possession trust

The inheritance tax implications of pension trusts

Who pays what when considering settlor-interested discretionary trusts, and who is repaid what?

A client’s will contained a nil-rate band discretionary trust clause and the residue of  the estate was left to the widow of the deceased. The estate is below £325,000 and there is doubt as to the entitlement of income from the main estate asset, a property

HMRC’s trusts and estates section has made changes to its inheritance tax (IHT) compliance checks in an effort to streamline the process and encourage collaborative working with taxpayers.

The Revenue aims to send an initial letter within eight to ten weeks of receipt of an account to explain it has been selected for a check. The case will then be allocated to an investigator, the contact point for all subsequent communication.

By John Woolley; £94.50; paperback; 459 pages inc. index; Claritax Books

Trustees of PL Travers will trust (TC2830)