Trusts

In a bare trust, the beneficiary has an absolute right to the assets and income held in the trust. In a discretionary trust, the trustees have discretion over how and when income and capital are distributed among a class of beneficiaries. Discretionary trusts offer more flexibility for tax planning and asset protection but are subject to more complex tax rules, including periodic and exit charges.

Yes. Trusts are subject to income tax on income they receive, capital gains tax on asset disposals, and inheritance tax charges at certain points (entry, exit, and ten-year anniversary charges for discretionary trusts). The tax treatment depends on the type of trust, so professional advice is essential to manage liabilities effectively.

A trust is a legal arrangement where assets are held by trustees for the benefit of beneficiaries. Trusts are commonly used for inheritance tax planning, protecting assets for children or vulnerable beneficiaries, and managing family wealth across generations. Setting up a trust requires careful legal and tax advice to ensure it achieves your objectives efficiently.