Trusts offer significant control and protection of assets for individuals and families, which cannot be achieved in any other way. There are different types of trusts available, and our experienced advisors can advise on the most appropriate one for your circumstances.
While trusts are often considered complicated, they do offer an essential and strategic tool to maximise the protection of assets.
Our trust experts can guide clients through the available options and assist with the creation and winding up of trusts as well as ongoing trust management. We aim to make the process of setting up a trust and its day-to-day running as straightforward as possible.
The Douglas Home & Co team can offer expert guidance on when and how trusts are set up. Our team of specialists will gain an in-depth understanding of our client’s circumstances and only if appropriate will we recommend setting up a trust and, on occasion, winding up trusts.
An important element of trust setup is the Trust Deed. Our team can instruct a lawyer to draft the Trust Deed on your behalf.
The ongoing management of trusts demands attention to detail and robust systems. Following the creation of the trust, our trust and tax experts can provide a fully comprehensive trust management service which includes:
In many cases clients bring existing trusts to us to review and, if appropriate, re-structure. If our team uncovers significant, we will provide a list of problems and a plan for resolving them to get the trust back on track if necessary.
Depending on the type and setup of the Trust it may be subject to Income Tax, Capital Gains Tax, or Inheritance Tax. Our experienced tax advisors can provide you with guidance on the tax liabilities of different types of trusts.
A trust is set up so that assets can be managed by one person or persons on behalf of another person or persons.
Trusts can offer a tax-efficient way to pass assets on to younger generations. Holding assets in a trust can also protect family wealth from risks such as divorce or bankruptcy.
Discretionary Trusts fall within ‘the relevant property regime’ and are therefore not exempt from Inheritance Tax (IHT).
Any gifts transferred into a Discretionary Trust are considered Chargeable Lifetime Transfers (CLTs).
These gifts will be added to any previous gifts made within the last 7 years, and if the total value of CLTs exceeds your nil rate bands (£325,000), there will be an immediate charge of 20% on any excess if paid by Trustees, or equally 25% if it is paid by the settlor.
However, IHT reliefs are available, reducing the value of CLT – for example, APR and BPR.
Additionally, there are ten-year anniversaries of the Trust where additional charge assessment is carried out. If there is tax to pay, the maximum rate will be 6% of the Trust value that exceeds the available Nil Rate Band.
Sheryl Macaulay is a Director at DH&Co and has been with the firm since 2002. She has extensive knowledge of Trusts, having assisted a wide variety of clients over the years to choose and set up the right type of Trust for their circumstances.
Our expert Trusts team can also work with our panel of solicitors to draft any relevant legal documentation.
As well as Trusts support, we also offer a range of other Personal Estate Planning Services:
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