Stand-out Q – gift trusts…

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THU, 06 APR 2017

Our Technical Hub provides access to a wide range of pension tax and trust technical resources. Every now and then we post tweets covering stand out questions from our technical content and our answers in case others might also find them helpful. As Twitter’s character restrictions only allow for the bare bones of the Q&A we link to the details here, too.

Question

What are the key features of the James Hay Wrap Gift Trust?

Answer
The settlor makes an outright gift to the trustees giving up all access to the trust fund – the gift and any growth.

The value of the gift will fall outside of the settlor’s estate for IHT purposes on their surviving 7 years, whilst any growth in the value of the trust fund is immediately outside of the settlor’s IHT estate.

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