View more on these topics

Flexibility is advantage for trusts

I was pleased to see that my letter, Trusts are the perfect solution, generated such interesting debate on the Money Marketing Letters to the Editor page.

A Letter to the Editor obviously cannot cover the many intricate complexities of inheritance tax planning. However, I felt that it was worth responding to the letters from Julian Stevens and Gerry Brown.

They both essentially pick up on the assertion that trusts cannot be easily broken. Perhaps I was imprecise in my choice of words and wound up, distributed or otherwise varied would be more appropriate.

However, the point that I was making was that one of the possible advantages of a gift to a trust as part of an estate planning exercise (for example, a discretionary trust) over an absolute gift, is that it can retain flexibility for the trustees/settlor.

It may defer any decisions over the application of capital and income and better protects the trust’s capital from calamities such as divorce, profligacy or silliness.

As far as getting the agreement of all the beneficiaries to bring the trust to an end, this is not usually necessary.Subject to the terms of the trust deed, it is often the trustees’ decision and theirs alone.

There are, of course, wider issues about the manage-ment of the trust, including investment of the trust funds, tax issues, etc.

My letter was not written with the intention of getting drawn into these sort of arguments, merely to point out that trusts are extremely flexible and underused vehicles.

I cannot, however, agree more with the final paragraph of Gerry Brown’s letter that the solution is dependent on the needs of each individual client.

Peter Legg

Head of inheritance tax planning matters, Vantis Tax,



A high price to pay for retention

Over the past month, the great industry debate has been retention. Most of the lending industry would love to do without intermediaries.

Yule tide

Those Lanson girls really are eager. Ex-Money Marketing hack now at the Daily Mail James Coney got a pleasant call from a Lansonette with a press release which she described as being “really relevant at the moment”. Was it on the subject of the party political conferences taking place over the next few weeks, the […]

Vanity fair

Treating Customers Fairly – is it a catchphrase or a reality with providers? IFAs have no choice but to treat customers fairly if we want any sort of long-term relationship. The client has to believe we are treating them fairly and operating in their best interests. But I do not get the same feeling from providers over whether they care about long-term relationships with their customers and certainly it looks as if some pay lip-service to treating customers fairly while in reality doing nothing of the sort.

Lifesearch claims Paymentcare is mislabelling ASU and MPPI

Lifesearch has lashed out at Paymentcare, claiming it is mislabelling ASU and MPPI as income protection. The firm says many general insurance firms are not following FSA treating customers fairly principles because they are promoting ASU and MPPI products as income protection. Paymentcare has been pinpointed as one of many prov-iders which Lifesearch says may […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm