Trusts Flashcards
1
Q
What are the drawbacks of a spousal bypass trust?
A
The trust is complex.
The trust will incur periodic and exit charges.
The trust is expensive to run.
2
Q
Explain the basic principles of how a spousal bypass trust works.
A
On death, benefits are nominated to the trust thereby remain in outside of the survivors estate for IHT purposes.
The survivor will be a beneficiary and a trustee, so can draw an income or take loans.
