Whenever people generally think of legal trusts, they think such matters are the preserve only of the wealthy. This view is only reinforced by the increasingly severe tax treatment of trusts, evidence in itself of the Government’s view that the main objective of those who set up trusts is to reduce tax.
However, research has indicated that people who set up trusts generally do so out of a greater concern to retain some control over their assets and to preserve assets for future generations, rather than purely to save tax.
As part of an overall consideration of an individual’s personal affairs, it is necessary not only to consider the setting up of Trusts in a Will, but also setting up such arrangements whilst a person is alive.
A Trust can be used to:
• Protect a family business or home
• Delay a child’s inheritance until they reach a certain age, protecting them from their own immaturity or unhealthy outside influences
• Control and administer family wealth over a period of time
• Make long term provision for people unable to manage their own affairs
• Make provision for second families
• Mitigate or plan against Capital Gains Tax or Inheritance Tax.
The creation or management of a Trust can be complex and contain all sorts of taxation traps for the unwary; expert advice is crucial. We have vast experience in the modern use of trusts and can advise on all matters such as:
• The creation, variation and termination of trusts
• The taxation issues surrounding trusts
• The appointment, retirement or removal of trustees
• Advising trustees generally on their responsibilities and duties
• Trust accounting