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Setting Up A Trust
There have been a number of changes to taxation of trusts in recent years, they pay Capital Gains Tax and Income Tax at higher rates and can be subject to a 10-year tax charge. However, there are still some advantages in setting up a trust.
Asset management and protection is one of the most compelling reasons for a trust. Family wealth can be protected when it is put into a trust, instead of given directly to children or grandchildren. The trust funds leave the settlor’s estate after 7 years, which can save some Inheritance Tax. Appointed professional trustees, working alongside the trust settlor, can look after the family wealth and make tax efficient distributions of income to beneficiaries, especially those younger ones who have not used up their personal allowance. This could allow trustees to retain more wealth over time and enable them to make better investment choices.
Effective control and governance can last for multiple generations and give families peace of mind that wealth will be applied for good purposes. The cost and compliance of a structure will be justified in the right circumstances.
Please contact us should you require further information or require assistance in setting up a trust.