I have a client who is interested in setting up a discretionary trust with a sum of £500,000, however he also wishes to be a beneficiary of the trust. Are there any inheritance tax (IHT) implications which need to be considered? He has not previously set up any other trusts.

Inheritance tax (IHT) is charged on the value transferred by a chargeable transfer. Transfers into most trusts, since March 2006, are chargeable lifetime transfers (CLTs).