IHT & Trusts
Looking for some guidance, please. I have a client who has created 14 Trusts for the benefit of his grandchildren. He is contributing to 7 of them on an annual basis.
The contributions are £5k each.
The total contributions so far are within his nil rate band, so I am comfortable that no IHT due when placing the premiums. However, if he were to pass away, is it the value at the date of death I would use to assess the value of the trust for IHT purposes and what interaction if any, would these regular payments have on the amount of IHT due?
I am considering some protection but not sure what value I would need to use for this. I have tried reading through Pru Adviser etc. but still not sure. Any opinions you can offer would be greatly appreciated.
Some further information;
Total contributions to date £270,951 (additional £35K now being paid in so takes us to £305,951)
Value excluding current premiums £358,577