Setting up a trust is the recommended course of action in a variety of scenarios. Commonly used for Inheritance Tax (IHT) and succession planning, trusts can also provide for the young and immature, or the elderly, disabled and vulnerable. Further, trusts are used to protect compensation payments, if, say, you are due to receive a personal injury settlement.
Trust in our approach
Our highly experienced team is happy to advise on all manner of trusts, and the many ways in which tax can impact on them.
During the lifetime of a trust, the team 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 trusts’ 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 returns
In addition to IHT, Capital Gains Tax and Income Tax need to be considered and we can provide straightforward, practical, yet sensitive advice to ensure our clients understand the tax implications and how best to act. In terms of property ownership, we’re also well versed on Declarations of Trust.
Declaration of Trust – Jointly Owned Property
We 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 avoid problems if in the future one of the parties dies, there is a dispute, or the property is sold.
Declaration of Trusts 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 help to avoid Capital Gains Tax problems in future.
Creating, administering and terminating trusts
For friendly, expert advice on creating, administering and terminating a trust, our dedicated Wills, Trusts and Probate team will be happy to help. Please call 01603 598000 or by email to firstname.lastname@example.org. Appointments are available at our Diss, Norwich and London offices or home visits by appointment.