What Inheritance Tax (IHT) charges are applicable to our Pilot trust?

As the pilot trust is a discretionary trust, entry charges, periodic charges and exit charges may apply.

If the pension death benefits come from a pension, where the trustees or scheme administrator have discretionary powers of disposal, it is worth bearing in mind that this is a separate settlement for the purposes of periodic and exit charges.

This can get complicated if the death benefits from more than one pension plan are placed in the trust.  Further information is available in the technical guide(Opens new window).