Personal tax
The outcomes of an earlier review by the government into mixed-use property purchases and multiple d...
By RJP LLP on 18 March 2024
Using Trusts and Estates for wealth planning
Trusts can be useful for clients looking to preserve existing wealth within their family for both now and the future. Although not suitable for all our clients, in the right circumstances, trusts can be a secure, flexible and potentially tax efficient way of allowing assets to be passed down through the generations. Trusts can also be used to ensure that only designated people can benefit from your estate, which is important for clients wishing to protect against divorce or who have complex family arrangements.
Dealing with tax relating to trusts and estates can be complex and our tax experts are highly experienced at advising clients. In order to address personal and family needs whilst at the same time maximising the potential tax planning benefits, there are a variety of types of trust which can be used.
What are the types of trust in the UK?
Bare trusts: where trust assets are held by the trustee on behalf of the beneficiary, usually without a complex legal trust document. The beneficiary is fully entitled to all of the capital and income of the trust once they reach 18 years of age;
Interest in possession trusts: these entitle the beneficiary to specific assets and also entitle the beneficiary to the income from the trust (less any expenses incurred);
Discretionary trusts: this type of trust is set up for a class of beneficiaries with the trustees having control over the distribution of trust income, and in some cases, capital.
Expert advice on trusts and estate planning
Our knowledge of the tax rules relating to trusts and estates is wide ranging and we are able to advise on situations where a trust may prove beneficial, including assistance in establishing and running a trust, plus dealing with all compliance requirements.
We are also able to deal with the tax complexities surrounding estates, including accounting and tax requirements, through to obtaining Grant of Probate and dealing with estate distribution cost effectively.
RJP’s cost-effective trusts and estates service includes
Preparation of Trust and Estate Accounts
We can prepare annual accounts with supporting documentation for all types of trusts and estates; where the administration period of the estate is complex and lengthy, we will prepare interim accounts as required.
Taxation of Trusts and Estates
We offer a variety of tax and planning services to assist in the complicated taxation matters that can arise including:
- Preparing trust and estate self-assessments;
- Finalising the deceased’s tax affairs to date of death;
- Preparing statements of estate income and forms R185 for estate income distributions to beneficiaries during the administration period and for trust beneficiaries;
- Calculating the inheritance tax position, completing any necessary inheritance tax forms and agreeing any liabilities with HMRC;
- Capital gains tax planning for estate and trust beneficiaries;
- Estate planning to curtail future inheritance tax liabilities.
The best way to tell if we’re a good fit for your needs is to see for yourself.
Business Services • Business Tax • Personal tax
In yet another blow to property investors, the 2024 Spring Budget heralded the end of tax advantages...
By RJP LLP on 18 March 2024
Business Services • Personal tax
‘Non doms’ - people who are resident in the UK but classified as non-UK domiciled for tax purpos...
By RJP LLP on 18 March 2024
I wanted to write and express our gratitude for your help and hard work in getting Probate through and settling all the taxes. I am so pleased that we selected RJP, as your professional help and updates throughout this process have been invaluable. If at any time in the future Probate assessment may be needed, you will be our first port of call. Once again, many thanks to the whole team.
Dan Cook, Probate clientI just wanted to drop you a short note to say how grateful I am for the support that RJP has provided over the past 4 weeks while our Financial Controller was away. I struggle to comprehend how much work your staff get through during their weekly visits and they are always a pleasure to have around the office.
I Evans, CFO, MoblicitiJust a quick e-mail from me to thank you for achieving the target for producing the draft accounts – it is very much appreciated and gives a first class impression of your firm. Many thanks.
J Stanfield, Chairman, BBS Actuaries LtdI would like to take this opportunity to thank you very much for the amazing job you have done navigating us through this whole process. My family and I also really appreciate the care and compassion demonstrated by you and your team in every dealing. Our thanks to everyone.
M Goldsmith, Probate ClientRJP provide our company with a complete service which takes the stress and strain away from the day to day running of our accounts! Their understanding of our business and their patience and advice is invaluable.
Outsourcing Client
60 Day Deadline for CGT Returns and Tax Payments
If you sell a property and incur capital gains tax on the transaction, you will need to file a tax return and also pay any tax that is due within 60 days of completion, or penalties will arise. Need help with your property taxes? Talk to us.