Brand Bitesize: Transfers into Discretionary Trusts
In this Brand Bitesize video, we take a look at how transfers into discretionary trusts work in practice when either the trustees or the settlor pays the tax due. This could be useful for anyone studying for the CII’s R03, J02, or AF1 exams. It could potentially appear on the R06 and AF5 exams as well.
This video is relevant to examinable tax year 2022/23 and is correct as at 14 March 2023.
Transfers into Discretionary Trusts
Transfers into discretionary trusts are called Chargeable Lifetime Transfers (CLTs). An immediate charge to IHT is triggered if the value of the CLT is over the settlor’s available nil rate band. You can find out more, including a worked example, in the Brand Bitesize video below.
Check out this short, informative video - it's Brand Bitesize, and this one's all about the transfers into discretionary trusts – useful for #CII #R03, R06, J02, AF1, or AF5 exam revision. Share on X
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If you’re studying for your CII R03 exam, and you’re aiming for a comfortable pass, you need to get all the practice you can. Grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R03 calculation workbook taster now!
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