Trust and Estates

Dealing with tax relating to trusts and estates can be complex and time consuming. 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. 

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.

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. 

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.