The use of Trusts

The use of a Trust can be a very effective way of controlling the distribution of family assets, and potentially reducing Inheritance Tax liabilities. As part of an overall consideration of an individual’s personal affairs, it is necessary not only to consider the setting up of Trusts in a Will, but also setting up such arrangements whilst a person is alive.

The concept of a Trust may often conjure up images of properties tied up in complicated arrangements for many years. This is a perception that is unwarranted in the modern age, where trusts are used for many purposes from preserving assets for future generations to saving Inheritance Tax.

A Trust can be used to

  • Protect a family business
  • Delay a child’s inheritance until they reach a certain age
  • Control the distribution of monies or property over a period of time
  • Make long term provision for people unable to manage their own affairs
  • Mitigate or plan against Capital Gains Tax or Inheritance Tax.

It is crucial to seek expert advice on such matters. The creation or management of a Trust can be complex. Our dedicated team have vast experience in the modern use of trusts and can advise on all relevant matters:

  • The creation, variation and termination of trusts
  • Inheritance Tax and Capital Gains Tax advice
  • Appointment and retirement of trustees
  • Advising trustees generally
  • Trust accounting
  • Income Tax and Inheritance Tax returns
  • Making distributions to beneficiaries
  • Preparation of Trust documents.

Advice to trustees

In addition to having the expertise in creation and administration of Trusts, we can provide independent advice to existing Trustees. The requirements of acting as a Trustee are onerous. We can help ensure that Trustees

  • Understand the terms of the Trust they are responsible for
  • Comply with the law
  • Take advice before making decisions, make those decisions in accordance with the law and the terms and purposes of the Trust, and correctly record those decisions
  • Comply with all necessary HM Revenue & Customs Income Tax, Capital Gains Tax and Inheritance Tax rules, and file returns on time
  • Monitor and manage trust investments
  • Complete accurate annual trust management accounts

Charities and Charitable Trusts

A Trust is a useful structure for the tax efficient management of charities, and of making financial provision for charities. Our team has expertise in the creation of charitable trusts, the administration of charitable trusts and compliance with the complex Charity Commission rules regulating charities.

For further information on trusts, please contact Chris Strange by emailing Chris or by calling him on 08450 990045, or speak to your usual contact in the Wills, Trust and Probate Team.