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Achieving the best use of Trusts.

With an Income Tax rate for many Trusts at 50%, it has never been more important to get it right, whether planning a new Trust or managing an existing one.

The design and management of Trusts can be complex, affecting the rights and tax liabilities of the settler, the beneficiaries and (in some cases) the Trustees. However, used properly they play a number of vital and unique roles:

  • in protecting your capital from predatory relatives or creditors
  • planning to minimise taxation (Inheritance Tax, Income Tax or Capital Gains Tax)
  • allowing one person to benefit from income in their lifetime, while preserving the capital for someone else
  • to allow a trustworthy person to protect and manage the affairs of the vulnerable

They come in a variety of guises. By way of examples:

  • a formal Settlement made in your lifetime taking assets permanently out of your estate
  • part of your Will, to look after assets left for the benefit of minor children or young adults
  • a short term initiative to pass certain assets to others, without triggering Capital Gains Tax
  • a simple arrangement between spouses to make best use of tax allowances and lower rates of taxation
  • a paragraph attaching to an insurance policy to make sure any cash due on your death is paid to your heirs free from 40% Inheritance Tax

Some Trusts must by law be reviewed every ten years, resulting in a measure of Inheritance Tax becoming payable. Making such reviews before the critical date may be crucial to minimising taxation and other avoidable costs.

We are used to working with our clients, their solicitors and financial services advisers to achieve the best use of Trusts, and to make their management as simple and trouble-free as possible.

Please contact us for a free initial discussion to see how we can help you!

Talk to an expert

Lawrence McAulay

Lawrence McAulay

Taxation & Planning

Do you need help with Trusts? Get in touch to find out more