A review of disabled and vulnerable beneficiary trusts

Aim

• The definition of vulnerable beneficiary includes for income tax and capital gains tax disabled persons; however, inheritance tax looks at the issue differently having disabled persons’ interest trusts (where the definition of disabled person is the same now as for income tax and CGT) but there is no vulnerable beneficiary scheme instead for IHT we have bereaved minors and Aged 18-25 trusts. This all makes for a confusing combination of scenarios. This webinar will endeavour to untangle the maze and explain the different types of relief under the income tax & CGT scheme on the one hand and the IHT scheme on the other.

Outcome

• Participants will be able to:
  • Identify when to make a vulnerable person election for income tax or CGT
  • Distinguish between the Disabled Person’s Interest and an ordinary discretionary trust

Agenda

• Who counts as a disabled person for all three taxes?
• Who is a vulnerable person for income tax & CGT?
• When should you make a vulnerable person election?
• What types of Disabled Persons Interest trusts are there for IHT?
• What the pros and cons of making them?