The system of Inheritance Tax charging in the UK is based on a cumulative method which assesses the addition of successive transfers in order to determined the rate of tax applied to the most recent. While many still see IHT as a ‘death charge’ the tax can also apply to lifetime transfers either immediately or retrospectively after death. The calculation of IHT uses a seven year cut off period... 

A new case had highlighted an important matter which faces beneficiaries in respect of their inheritance. The case, which ended up in Court, involved David Lyttelton, son of jazz musician Humphrey Lyttelton, who inherited part of his father’s estate under the terms of his Will. Despite his financial circumstances improving he continued to claim income support and council tax benefit without declaring... 

The use of pilot trusts in estate planning is a simple, yet often overlooked, method of passing assets on to chosen beneficiaries more effectively and minimising the on-going taxation implications. Pilot trusts are often seen as vehicles for receiving death in service benefits or insurance policies to avoid these payments being made directly to a surviving spouse and therefore forming part of their...