Trusts and executorships

Take full advantage of these tax planning tools

Trusts are extremely useful instruments for tax planning purposes and protecting family wealth.
Key benefits include:

•  Minimise tax exposure 
•  Protect assets from bankruptcy and divorce
•  Provide financial help for those with mental or physical disabilities
• Control how and when assets are distributed to beneficiaries
• Provide for the long term security of your dependants

New rules were introduced by Finance Act 2006, most of which took effect from 22 March 2006. These are complex and have a wide ranging effect on capital transactions and trust structures both old and new. The main thrust of the new legislation is to extend the “relevant property” regime, under which gifts into discretionary trusts are subject to IHT at the lifetime rate of 20% and the trust fund suffers both 10 yearly periodic IHT charges and a potential exit charge on capital distributions.

There are a number of surviving exceptions to this regime including trusts established for charitable purposes and gifts into qualifying disabled persons trusts. Furthermore, the spouse exemption will still be available in respect of gifts under a will where the surviving spouse or partner takes an immediate life interest.

The legislation also provides for some new exceptions to the relevant property regime including Immediate Post Death Interests, (IPDI’s); Bereaved Minor Trusts and 18-25 trusts.
The need for advice in this area is now greater than ever. We can help you determine which types of trust are suited to your purposes as well as advising on the legal and taxation implications of existing arrangements. Our services to clients include;

• Trusteeship
• Administration on behalf of trustees
• Trust review

Probate Services

Our range of probate services provide assistance to executors, estate administrators and beneficiaries based upon their individual needs and requirements.
This might involve specific duties, such as obtaining the Grant of representation, or the administration of an entire estate.
Some of the areas where we can help include:

•  Explaining the terms of a Will
•  Explaining how an estate should be distributed, for example on intestacy
•  Establishing the value of the assets and liabilities
•  Preparing the papers leading to the Grant of representation
•  Preparing all tax returns and calculating any tax liabilities
•  Collecting the assets, paying taxes and settling debts
•  Distributing the estate assets to those entitled
•  Preparing comprehensive accounts.
  

 Call Keith Bouttell on 01763 247371 today to discuss how you can take advantage of this extremely useful tax planning tool.