Moving a trust offshore

[Greygoose]

Widower Father died, late April 2006. I'm executor and trustee of his nill rate band discretionary will trust. His only lifetime gift was an insurance bond, written in trust, with reserved benefits of £35,000 on which IHT has been paid, so the trust starts off with £285,000.

Beneficiaries are: a family pemanently resident in Australia, two families in the UK and our selves (in our comfortable 70's). The trust assets could go to the next generation now but, over the next nine years, their family circumstance may change their relative needs.

Should we keep the trust in the UK and wind it up before year ten. Alternatively, if I stand down, would it be possible, prudent and tax efficient, for a professional trustee to move it off-shore and would this only incur the proportionate charge? Do UK beneficiaries, prevent this? Would a non-professional Australian trustee expose the trust to Australian tax penalties?

Several questions on which I need specialist advice to make a careful decision for our scattered family. Help please from experts on trusts in the UK, Oz and elsewhere - even if the answer is 'No!'

[Peter D]

I am having a busy day day but a quick look begs the question. Why has a decased widower still got a NRB Trust running The trigger for disolving the trust is usually the DOD and the beneficiaries gain there % of the estate including the contents of the trust I assume, may be incorrectly that the NRB was declased when his wife passed away some time ago. ?? Regards Peter

[Greygoose]

Maybe usual, but why? I Think longterm about our IHT. Isn't the ten year charge, due 2016 and 2026, = 12% against 40%IHT? e.g could we register an indexed charge on PPR, while handing down the interest free loan as a PET (the settlor has no interest) or move it off-shore as a sort of IHT free ISA or does that incur a tax hit? (BTW there are 2 trusts 2000 & 2006).