Services for Individuals -

Trusts

“Even following recent changes Trusts remain useful structures for managing family wealth ”

Introduction

Despite the impact of Finance Act 2006 trusts are still widely used as part of inheritance planning, both to minimise tax liabilities and as a way of controlling what happens to wealth and property after the owner's death.

Trust Creation

After taking instructions our Trusts specialists can advise you on the legal, practical, capital taxes and income tax implications of creating a trust. Common types of trusts include:

Discretionary Trusts Life Interest Trusts
Trusts for Disabled Persons
Will Trusts
Trusts arising out of the Variation of a Will or intestacy
Personal Injury Trusts
Bare Trusts for grandchildren
Charitable Trusts
Trusts of life insurance policies

We can also provide ongoing assistance with annual trust administration or other regular events such as 10 yearly / exit charges arising out of Discretionary Trusts.

Please see our Taxation page for further details about Trusts and estate planning issues.

Trust Restructuring

As a result of the Finance Act 2006 existing Accumulation & Maintenance should be reviewed well before 6th April 2008 to see if the Trustees need to exercise their powers (if possible) to restructure the trust or maintain the existing structure and enter the relevant property regime.

Existing Life Interest Trusts should also be reviewed well before 6th April 2008.

For further information please click this link to an information sheet concerning the main issues arising out of the

Finance Act 2006 for Lifetime Trusts

Personal Injury Trusts

When advising on the creation and administration of Personal Injury Trusts we can call on specialists in our Personal Injury Department and our Capacity Team to assist with capacity issues and Court of Protection.

Click for an information sheet explaining Personal Injury Trusts for both Minor Claimants and Adult Claimants.

Russell Cooke Trust Company

As you are aware, individuals can act as trustees of trusts, but there are advantages in using a trust company; it is likely to be longer-lived than an individual and may find it easier to remain neutral if there are disputes or problems.

Clients have the option of nominating our own trust company, the Russell-Cooke Trust Company, as a trustee. It is non-profit-making, regulated by the Law Society and covered by the firm's professional indemnity policy.

Glossary

The Revenue’s website includes a useful glossary dealing with common terms and phrases associated with Trusts and Inheritance Tax.

Please click on this link for more information www.hmrc.gov.uk/cto/glossary.htm

Trust Administration

Our dedicated trusts administration team manages a number of long-standing family trusts and deals with the legal issues that arise from them, working closely with the wills and probate department. Many of its clients have a long-standing relationship with the firm, often going back decades.

The trusts administration team can assist with the day to day administration of private family trusts and personal injury trusts. Common examples of the work undertaken include:

Recording entries of income and capital events on our trust accounting software
Producing annual trust accounts
Completing and lodging annual trust Tax Returns including payments on account of tax
Dealing with Inheritance Tax events such as appointments of capital, advising thereon and dealing with necessary HMRC compliance
Advising the trustees from time to time, as necessary or at their specific request (e.g. on the affects of the annual Finance Act)
Liasing with other professional advisors (either inside or outside Russell-Cooke) as regards trust assets (e.g. property managers, investment advisors)
Corresponding with beneficiaries on the trustee’s instructions including making income or capital distributions, providing certificates of deduction or tax, income schedules etc