Trusts & trust funds solicitors
A tax-efficient trust can be an important tool when looking to protect your assets for the future from things such as Inheritance Tax. Implementing a trust can also help manage capital gains tax and income tax implications.
Overview
Looking after your assets through the use of a trust
Careful estate planning is vital and our team, specialising in trust law, has extensive experience in setting up and running trusts, which are a great way to protect your assets and your loved ones.
Setting up a trust allows specific assets to be transferred to someone else (Trustees) to be used for a particular purpose, such as providing financial support or ensuring long term care, and to benefit specific people (the beneficiaries).
This legal arrangement is an effective and flexible way of ensuring that certain assets can be passed to organisations, future generations or others according to your wishes. .
There are different types of trust suitable for different situations, including:
- Family Trusts (Discretionary and Liferent)
- Charitable Trusts
- Disabled Beneficiaries Trusts
- Personal Injury Trusts
Key contacts
THE TEAM
FAQS
Common questions about trusts & trust funds
What is a trust fund and how does it work?
Answer
A trust fund is a pot of assets, often cash, investments or a house, set aside by you and managed by Trustees for the benefit of the people or organisations that you name.
Why set up a trust?
Answer
Setting up a lifetime trust as a legal arrangement can be an important tool when looking to protect your assets for the future from tax liabilities such as Inheritance Tax. There are many good reasons for setting up a trust, including:
- Asset protection
- Reduce Inheritance Tax liabilities
- Tax efficient inheritance for your children
- Protection against business failure
- Protection against division of assets on Separation and/or Divorce
- Personal injury compensation awarded
- Protection of assets for those who are disabled or suffer from reduced capacity
How do trust funds pay out?
Answer
The manner in which trust assets in a trust fund are distributed will depend upon the type of trust that you create. Sometimes named beneficiaries will have a specific entitlement to some of the trust assets. In other cases, the decision making around the distribution of assets will rest entirely in the hands of the Trustees.
Some trusts are intended to be in place for a specific period of time or until a specific event (eg a death or a particular birthday) while others, like lifetime trusts or non resident trusts, are intended to run on an indefinite basis.
TRS
Trust Registration Service (TRS)
Following new EU Anti-Money Laundering regulations and as part of increasing demands globally for transparency, most UK trusts and some foreign trusts, like non resident trusts, are required to maintain details of their beneficial owners. Beneficial owners include settlors, trustees, beneficiaries, protectors and any individuals with control/influence. All express trusts, regardless of whether they are required to pay any tax, must report details of their beneficial owners, together with additional information on trust assets, to HMRC. HMRC will retain this data on a Trust Register. Trusts which require to submit a self-assessment, or have a liability to other taxes such as Inheritance Tax or Land & Buildings Transaction Tax must also notify HMRC and register with the relevant service to ensure those taxes are paid timeously.
Trusts must supply information to HMRC via the Trust Registration Service (TRS) in the first instance. The Information on TRS must then be reviewed and an annual declaration must be submitted to HMRC to record the information is correct. Any changes to the information shown on the Register must be updated within 90 days of the change.
The reportable information is:
- full name of the trust
- date of creation
- trust assets held
- tax residency
- beneficial owners details (See Below)
- correspondence address
- advisers’ details
- type of trust
For each Individual beneficial owner (Settlors, Trustees & Beneficiaries who have been determined) the Trustees must report their name, address, date of birth and National Insurance number. If they do not have a National Insurance number, their passport details will be required instead. In addition they will be required to confirm their nationality and country of residence if they are not UK citizens. Date of death will be required for deceased Settlors and if Holdover Relief was claimed on creation of the trust, this should also be intimated.
For Corporate Trustees, details of the name, address, company tax reference, company address and email details are required.
Forms
Trust Compliance Forms
Following new EU Anti-Money Laundering regulations and as part of increasing demands globally for transparency, most UK trusts and some foreign trusts are required to maintain details of their beneficial owners.
Trust Information
Overview
Complete the downloadable trust deed form and return to us.
Settled Property
Overview
Complete the downloadable trust deed form and return to us.
Individuals form
Overview
Complete the downloadable form and return to us with a copy of the trust deed.
Corporate details form
Overview
Complete the downloadable form and return to us.
Only to be used if a corporate Trustee is involved.
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Pamela Niven advises on wills and tax matters. Niven is head of private client asset protection and tax at Harper Macleod and is experienced in tax and succession planning matters. “Pamela is absolutely fantastic. She is thorough, commercial and very client-focused.” “Pamela is very good. She is very thorough, collaborative and technical. She is able to come to each matter with a solution- and client-first approach. I would recommend her without any hesitation.”
Lindsay MacEwen is a senior associate within the firm’s private client practice. MacEwen has expertise in all aspects of private client law, with a particular focus on trusts and landed estates. “Lindsay is very technically able, competent and always willing to go the extra mile for her clients.” “Lindsay is easy to deal with and has very sound knowledge that I trust implicitly.” “She is highly professional and very knowledgeable. She is exceptional.”
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