Standard Life urges individuals to review their trusts

Research carried out by Standard Life has revealed that only 17% of individuals have taken advantage of the estate planning benefits of trusts, with 82% still leaving their assets outside this important wrapper.

More worryingly, of those with a trust, 56% have not sought legal or financial advice relating to this trust since changes in legislation were announced in the March 2006 Budget. Trusts set up before 22 March 2006 should be reviewed to understand the impact of this year’s Finance Act.

Commenting on the findings Julie Hutchison, National Development Specialist – Estate Planning, for Standard Life said “The March 2006 Budget saw the biggest changes to inheritance tax (IHT) rules in a generation. Many people with existing trusts will find that the tax rules applying to their trust are not those originally envisaged, leading to some unexpected IHT bills. I would urge everyone with a trust, who has not yet done so, to seek legal and financial advice immediately as any restructuring must be carried out prior to March 2008.”

Like many providers, Standard Life initially suspended its trust range earlier this year after the budget announcement created uncertainty around the tax status of gifts to trusts. The re-launch of the Discounted Gift Plan in August 2006 restored much needed flexibility to estate planning.