Trusts Flashcards Preview

AF3 > Trusts > Flashcards

Flashcards in Trusts Deck (2)
Loading 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.