Trusts and executorships

Trusts are a very valuable tool to assist with tax planning and wealth management. A trust can enable assets to be gifted out of your estate, often free of any inheritance or capital gains tax liability, whilst allowing you to retain a degree of control over the assets.  There are several different types of trust and the variety allows for many useful planning opportunities depending upon your circumstances.

In addition to removing assets from an estate for tax purposes, trusts can be useful for:

  • Providing funds for your children or grandchildren's education, maintenance, etc.
  • Restricting access to property by future beneficiaries
  • Providing for people who are mentally or otherwise incapacitated
  • Gifting to charity

There are four main types of trust:

  1. Interest in Possession trusts
  2. Discretionary trusts
  3. Special trusts
  4. Bare trusts

The type of trust you require very much depends upon the objectives for the future distribution of your wealth.  The tax legislation covering trusts is large and complex, with particular attention required to the interaction between capital gains tax and inheritance tax. 

To take full advantage of trusts in your tax and estate planning you need to receive expert help and advice.  We can help you determine which types of trust are suited to your purposes and help you plan and administer your trust efficiently.

Contact Us today to discuss how you can take advantage of this extremely useful tax planning tool.