One or Two Pilot Trusts?

I have a client with not long to live. She has £150k of pensions and a £300k death in service benefit. Client’s daughter is 15, and severely autistic.

I propose discretionary trusts for the sums to be paid into with daughter as main intended beneficiary.

Is it best to set up two pilot trusts to split the funds and nominate the benefits to pay into the trusts to avoid IHT exit charge regime, or will these aggregate and be related settlements, making that pointless and just stick to one pilot trust?

Many thanks

Hi Thomas,

In terms of pension by-pass trusts the same day additions rules do not apply, they are not a transfer of value for IHT purposes.

I would consider paying the schemes into the estate and using a disabled persons trust.? Would this not be more tax efficient?

Richard C Bishop
PFEP