Trusts

 

A Trust is where property is entrusted to a person (called a Trustee) with instructions to use it for another person or persons benefit (called Beneficiaries) and might be created for various circumstances including:

  • When someone is too young to handle their affairs
  • When someone cannot handle their affairs through disability
  • Under the terms of a Will

 

Trusts are complicated and Inheritance Tax/Capital Gains tax may be payable when putting property into a Trust.  Trust property can be anything including land or property, shares, money or antiques.

The Trustees can be individuals or a Company and they are the "legal owners" of Trust property and must deal with it in the way set out in the Trust Deed.  They also deal with the Trust administration.

It is advisable to speak to a tax adviser or accountant before agreeing to be a Trustee.  For taxation purposes a Trustee is responsible for notifying H M Revenue & Customs when tax is due, keeping records of income and capital gain and completing tax returns.

There are several types of Trusts whether they are created during a lifetime or in a Will and we will be happy to advise on which Trust would be applicable to your circumstances and also advise on Nil Rate Band Discretionary Will Trusts and their implementation after death.

23rd February 2019

Sarginsons Law