Apparently, David Cameron was probably the only rich kid for whom a Trust Fund was never set up. A startling omission by his father because it would have been the most efficient way to put cash or any other type of asset away with junior as the beneficiary. A Trust has ‘trustees’ who usually exercise their discretion in how much is paid to the beneficiary and when it is paid. Trusts are not only useful for passing down assets to the next generation but also keep assets out of a settlor’s estate, thus reducing any Inheritance Tax liability. It is therefore VERY surprising that Cameron Snr did not think of that!
However, it is nevertheless always a good idea to listen very carefully to the words written for any Cameron statement. For instance, the latest denial issued by Downing Street contains the following sentence:
“There are no offshore trusts or funds that the Prime Minister or his immediate family would benefit from in future“
One can only assume that the trustees have exercised their discretion very recently as well as very suddenly…….unless of course Cameron Snr indeed did not follow his own advice!