Trust & Estate Planning

What is a trust?

It is an obligation that binds a person (the trustee) to deal with property in a particular way for the benefit of one or more beneficiaries. Trusts can be created during a lifetime or in a will, either by the trust deed or under the terms of a will.

Trusts can be a complex area for tax but are also highly tax efficient. We can explain how they work and advise you from the initial creation to the annual ongoing administrative requirements.

Who is involved in a trust?

The settlor

The person who passes assets into a trust.

The beneficiaries

Anyone who benefits from the property held in trust.

The trustee

The legal owner of the property who is legally bound to look after the property of the trust.

The main trusts for tax planning:

A discretionary trust

Trustees have discretion with regards to how to use the income and capital of the trust.

An income in possession trust

The beneficiary has a current legal right to the income of the trust as it arises.

A settlor interested trust

The settlor retains an interest in the trust.

How we can help with your trust:

Our role is to discuss your needs and requirements and to work out the best kind of trust for your situation. For example:

  • To protect vulnerable beneficiaries, such as disabled people or children who have lost a parent.
  • ‘Interest in Possession’ where beneficiaries have a right to all the trust income.
  • To ensure individuals are provided with an income
  • To provide flexibility and security

Is there anything else I need to know about trusts?

Here are a few commonly asked questions:

Potentially there could be capital gains tax or inheritance tax.

Potentially there could be income tax, capital gains tax and inheritance tax.

It represents tax paid by the trustees which is available to meet any payments to beneficiaries.

An inheritance tax charge dependent upon the value of the assets of the trust.

It may be in certain circumstances.

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Is a trust suitable for my circumstances?

Trusts are used for many different reasons. Chat to us so that we can understand your personal circumstances and provide the most suitable advice.

Estate Services

Following a death, there can be lots of paperwork to deal with and we understand this can be very difficult and overwhelming.

We are here to help with any income tax, capital gains tax and inheritance tax queries and we’ll also guide you through the relevant forms to complete for HM Revenue and Customs.

We can assist with decision making by providing tax advice on the benefits (or otherwise) of distributing income or assets.

We can also advise on the redirection of estate assets and potential tax savings.

Want to chat about your Trust or Estate?

Call us for a no-obligation chat. Our partners are waiting to hear from you.