Traps for Trustees

NHERITANCE TAX: New traps for trustees of relevant property trusts
The new rules governing periodic inheritance tax charges on relevant property trusts have created two traps into which unwary trustees can easily fall, according to law firm Withers. One is that income retained for five years now attracts the full 6 per cent charge, unless it is explicitly accumulated. The other is that pre-existing Rysaffe trusts (multiple trusts set up on the same day) become tainted if property was added to them on or after 10 December 2014, forfeiting their separate nil-rate band.