Personal Tax

Trusts

Setting up a trust is not just for the wealthy. It can be used by anyone looking to plan how they want to pass on their assets in a tax efficient manner to the next generation and/or to protect their income and estate from unnecessary tax liabilities and expenses during life.

Trusts can hold a wide a variety of assets including, property, cash, investments, shares, family heirlooms. 

There are many different types of trust, the most common ones are discretionary trusts, bare Trusts (holding assets for a child until they reach 18) and life rent trusts (this usually provides income for an individual beneficiary while preserving the assets and capital for other beneficiaries after the death of the individual, who is known as the life tenant). 

A discretionary trust can be set up for several reasons. 

  • Used as an efficient and effective way to distribute wealth through the family and to other loved ones.
  • Give the flexibility to specify exactly who you want to benefit from the Trust and to exclude those you do not wish to benefit.
  • Tax efficient way to share your wealth with your loved ones during life – you can set up a trust to financially support your children with their children’s schooling and education costs.

A trust is usually set up in your name and for your benefit while you are alive. Your assets are placed into the Trust and when you die, your trustees will pass the assets on to your beneficiaries as you had intended. 

There are additional costs with setting up, administering and accounting, paying taxes associated with the Trust and they will not suit everyone.  There are other legitimate ways to managing your wealth and to minimise any taxes that may be payable by your estate. 

How can we help

  • Advise you on the merits of establishing a Trust – and the different types of trusts that are available within the context of your objectives and circumstances. 
  • Review potential inheritance tax and capital gains tax position impacts with and without the Trust so you are aware of the potential impacts. 
  • Prepare the annual Trust accounts and tax return
  • Advise the trustees on the tax impacts of distributing the assets or funds to the beneficiaries 

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Our Personal Tax Expert Wendy McBride

Wendy is a highly experienced tax accountant and an ATT Fellow working with corporate and private clients.

Wendy helps our clients to identify and access all the tax reliefs and allowances they’re entitled to access, as well as helping them to plan ahead to minimise potential future tax liabilities.