Top up existing trust or create new one?

I’ve become confused with the post 2015 changes in respect of multiple trusts established by the same settlor. In this instance the clients established a discretionary trust in 2013 and are keen to settle additional property for the benefit of family. Administrative ease and favourable tax rules for adding to existing offshore bonds suggests topping up the existing one, but I think that the post 2015 changes would mean that a new trust would benefit a whole new nil rate band. The first option has income tax advantages whereas the second one appears to have IHT advantages. Am I missing something?

Ian Wells
CBW Financial Planning

The F(No2)2015 amendments are designed to prevent same day additions being made to two or more settlements IHT effectively.

This doesn’t appear to be your situation.

The creation of a. new discretionary settlement into which funds are settled in principle gives the new settlement its own NRB (and the then two settlements are not related for IHT).

The addition of funds by way of a top up to the offshore bond already settled may, as you say, offer income tax advantages but only one NRB is applicable.

Presumably the better of the two options will depend upon all the surrounding facts.

Malcolm Finney