Trusts are frequently used for Inheritance Tax and succession planning, but can also be used to provide for young, immature or vulnerable members of your family during your lifetime and after your death, without giving them access to large amounts of income or capital which they may be unable to handle.
You can also use trusts to provide for elderly, frail or dependant relatives, or even yourself to protect compensation payments if you are due to receive a personal injury settlement.
Trusts can be a valuable planning tool, but proper advice is always essential before setting up a trust
During the lifetime of a trust Steeles Law can advise on:
- the Income Tax and Capital Gains Tax rates and allowances for trusts, which are different from those for individuals
- payment of Inheritance Tax on starting or ending a trust and during the trust’s lifetime
- trustees’ legal duties and responsibilities towards the beneficiaries of the trust
- the effect of the trust on a beneficiary’s welfare benefits
- registration of the trust for Income Tax and Inheritance Tax and completion of Income Tax and Inheritance Tax returns
Declarations of Trust – Jointly Owned Property
Steeles Law can assist in the drawing up of Declarations of Trust, in order to agree the proportions in which you own a property and what rights and responsibilities you have in relation to it. A Declaration of Trust will help to avoid problems if in the future, one of the parties dies, there is a dispute, or the property is sold.
Declarations of Trust are essential when:
- Acquiring a home or other property with someone else, particularly with someone other than your spouse
- Contributing to the purchase or improvement of a property in somebody else’s name
A properly drawn Declaration of Trust can also help to avoid Capital Gains Tax problems in future.
Please contact us for further advice.