Trusts
Trusts have been recommended by accountants and solicitors for many years as a key tool in tax planning and they have many potential advantages for other purposes.
The most common use of trusts is for asset protection and/or tax planning. As successive Governments have attempted to close perceived loopholes in tax legislation, this has made trust planning more complex, and has introduced several potential pitfalls, although the potential benefits do still remain.
Our trust accountants have extensive experience in trust planning, ensuring that your long-term objectives are met whilst avoiding these potential problems. So, if you are thinking about:
- Protecting the family business or assets from potential marital breakdown in the future, or care home fees draining your wealth,
- Mitigating the Inheritance Tax payable on your death,
- by starting the 7 year transfer clock,
- where an eventual trade sale is expected, by sheltering cash, which will be liable to 40% IHT, outside of your estate,
- Helping to fund grandchildren’s education and maintenance,
- To provide financial security for disable beneficiaries,
- Testing the water with HMRC for future inheritance tax planning purposes,
- Looking to pass assets on to the next generation, capital gains tax free
We can help you explore your options. We have good connections with local solicitors who can deal with drawing up the necessary legal documentation, and also with stockbrokers and financial advisers, should there be a requirement to invest trust funds. Our partners can also act in a personal capacity as trustee, should this be required.
Once a trust has been established, there is usually an ongoing administrative requirement, depending on the trust’s specific circumstances. This can include:
- Self-assessment tax returns
- Trust Accounts
- Forms R185 for beneficiaries
- Inheritance Tax forms
- Making submissions to the HMRC trust registration service
We can assist in preparing this documentation on the trustees’ behalf, as part of our ongoing service.
Our specialist trust accountants team is here to assist you, whether you need help in considering trust planning, are looking for assistance in dealing with administration, or want to explore winding up or making an appointment out of a trust.
We have expertise in dealing with any trust enquiries or compliance checks raised by HM Revenue and Customs and can also deal with any prompted or unprompted disclosures that are required to be made to HM Revenue and Customs in order to ensure trustees remain fully compliant and up to date with their reporting and tax payment responsibilities.
Client Review
In the years that you and your colleagues have acted as my accountants, a professional service has developed into a valued friendship and source of financial advice and guidance. In both service and professional terms, you have really gone the extra mile.
