Trusts and Estates
Trusts are generally created to protect assets, so your loved ones can enjoy the financial stability you wish them to enjoy, whether in your lifetime or after your death. Another aim for creating trusts is to avoid paying hefty inheritance tax.
There are two main types of express trusts in the UK, i.e. Discretionary Trusts and Interest in Possession Trusts, also known as Life Interest Trusts. Other trusts are Bare Trusts, Accumulation Trusts, Mixed Trusts and Settlor-Interested Trusts and Non-Resident Trusts.
If the trust is an express trust, i.e. created by a settlor deliberately, it must be registered with HMRC. Trusts also need to file Inheritance Tax Return when there is an exit charge or principal charge.
Exit charge is charged when an asset, i.e. cash, shares or property, leaves the trust, and the principal charge is charged at each 10th anniversary of the trust.
At Spherical Accountants, we can help you with the Trust Registration, prepare and file IHT returns for exit and principal charges, and help you with income and capital distribution planning.
We will communicate with your portfolio managers and trustees to ensure the smooth running of the trust and accurate and timely filings.
Contact us today to discuss the taxation of your trust and estate and its planning.
