Trusts
Many of us shy away from planning for the time when we will no longer be here to care for our loved ones. However, part of efficient tax planning should mean looking ahead to this time in the future and optimising your wealth on behalf of your family and future generations. Early estate planning means that you will have more opportunities to mitigate your tax liabilities whilst remaining tax compliant. This should mean that your family receives more of your estate.
A trust is an effective way of managing your assets (i.e., your money, investments, property or land you own) for the benefit of your loved ones.
Types of Trusts
The main types of trust are:
- bare trusts
- interest in possession trusts
- discretionary trusts
- accumulation trusts
- mixed trusts
- settlor-interested trusts
- non-resident trusts
Each type of trust is taxed differently, therefore it is important to get advice when thinking about these matters.
The tax advantages of Trusts
If you are considering setting aside assets for specific future beneficiaries, trusts can be a tax efficient way to ring fence these assets outside the scope of current Inheritance Tax legislation. Trusts should also be considered when reviewing your business tax planning.
As well as helping to pass assets through different generations of families, trusts can also help families to:
- Retain control over gifted assets
- Provide for children and vulnerable beneficiaries
- Protect assets, including restricting access by future beneficiaries to property
- Make gifts to charities
How we can help
At MFW, we can:
- advise you on the most appropriate type of trust for your situation,
- advise you on the implications of each trust type, and;
- which are the most suitable for your needs. This includes advice on Capital Gains Tax (CGT) and Inheritance Tax (IHT) implications.
Our services include:
- Setting up and registering your trust with HMRC.
- Completion of trusts accounts.
- Completing of tax returns.
- Providing distribution advice to your beneficiaries.
- Assistance with the winding up or closing of trusts.
There can be tax-planning considerations when preparing your Will and we can advise you about these as required. We can also offer assistance regarding IHT returns and applications for Probate.
Book a free initial consultation
Book a consultation to see how we can help you.
