A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. A Trust is not just for the wealthy, a trust can be used by anyone wishing to plan ahead. A Trust can serve many purposes – from financing educational costs, providing maintenance to children, grandchildren or other relatives or simply planning to pass wealth through generations and specifying specific people that can benefit from that Trust. Few benefits of setting up a Trust are listed below:
• Assets in a trust may be able to pass outside of probate, saving time, court fees, and potentially reducing estate taxes
• You will have protection of your legacy. It means properly constructed Trust can help protect your estate from your heirs’ creditors or from beneficiaries who may not be adept at money management
• You will have control of your wealth. You can specify the terms of a trust precisely, controlling when and to whom distributions may be made.
We can assist in setting up a Trust while considering a settlor’s personal circumstances and reviewing its Inheritance Tax, Capital Gains Tax and Income Tax implications. We can advise beneficiaries of Trusts on the tax issues arising when they receive Trust income or an asset from the Trust. We can also prepare the necessary annual accounts and tax returns for Trusts. Further, we can assist with Trust planning and options to fund Inheritance tax.