Trusts
‘Ring-fencing’ assets to protect family wealth for future generations You may want to consider putting some of your assets into a trust for a loved one. Trusts are a way of managing wealth, money, investments, land or property, for you, your family or anyone else you’d like to benefit.
Extending the scope of the trust register
Deadline for non-taxable trust registrations announced When you put assets in a trust, they are under the control of an appointed person or persons called ‘trustees’. The trustees then manage the trust according to your instructions, even after your death.
Bare Trust
Held for the benefit of a specified beneficiary Bare Trusts are also known as ‘Absolute’ or ‘Fixed Interest Trusts’, and there can be subtle differences. The settlor – the person creating the trust – makes a gift into the trust, which is held for the benefit of a specified beneficiary. If the trust is for […]
Discretionary Trust
Wide class of potential beneficiaries With a Discretionary Trust, the settlor makes a gift into trust, and the trustees hold the trust fund for a wide class of potential beneficiaries. This is known as ‘settled’ or ‘relevant’ property. For lump sum investments, the initial gift is a chargeable lifetime transfer for Inheritance Tax purposes.
Flexible Trusts with default beneficiaries
Default beneficiaries set up in the settlor’s lifetime Flexible Trusts are similar to a fully Discretionary Trust, except that alongside a wide class of potential beneficiaries, there must be at least one named default beneficiary. Flexible Trusts with default beneficiaries set up in the settlor’s lifetime from 22 March 2006 onwards are treated in exactly […]
Split Trusts
Family protection policies These trusts are often used for family protection policies with critical illness or terminal illness benefits in addition to life cover. Split Trusts can be Bare Trusts, Discretionary Trusts or Flexible Trusts with default beneficiaries. When using this type of trust, the settlor/life assured carves out the right to receive any critical […]
Lasting Power of Attorney
Allowing someone to make decisions for you, or act on your behalf A Lasting Power of Attorney (LPA) enables individuals to take control of decisions that affect them, even in the event that they can’t make those decisions for themselves. Without an LPA, loved ones could be forced to endure a costly and lengthy process […]
Business Property Relief
A key solution for significantly reducing a potential future Inheritance Tax bill If you have business owner status, or have shares of a business, this will be reflected in the value of your estate. Business Property Relief is a valuable Inheritance Tax relief for business owners, whether making a lifetime transfer or on death. Business […]
Preserving wealth for future generations
Factors likely to have a lasting and positive impact on wealth Whether you have earned your wealth, inherited it or made shrewd investments, you will want to ensure that as little of it as possible ends up in the hands of HM Revenue & Customs. With careful planning and professional financial advice, it is possible […]
