Give us your details and we’ll be in touch asap

Trusts and estates

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.

Image
Image

31 December 2020 - Review disposals of chargeable assets to avoid a possible CGT increase

Capital gains tax is due to be reviewed by the government and if a CGT rise is announced, the new rates may become effective from the next tax year on 6 April 2021. Take advice now if you are thinking of selling property or have other assets giving rise to a capital gains tax liability.