Despite the overhaul of the tax system for trusts in the 2006 Finance Act, the role of trusts as part of overall financial planning is very much alive.
Although Inheritance tax charges may now be incurred on trusts which were not previously caught, opportunities still remain to utilise trusts as a wealth management tool, in conjunction with lifetime gifts and your Will.
The tax advantages of creating a trust can still be extensive, not only removing assets from a client’s estate but also allowing future growth in these assets to pass to someone else. The tax treatment as regards income can also be very attractive, particularly to children under 18 and grandchildren. Assets passed into trusts are of course controlled by trustees until they believe the beneficiaries are ready to receive the capital and this is still, for many, the most important factor behind the creation of a trust.
We can advise you of the effects of the 2006 rules on existing trusts and help you develop a strategy for your family’s wealth and to help you help future generations.
Our work in this area has now expanded to such an extent that we have set up a specialist trust company, Mercer & Hole Trustees Limited, with responsibility for over 500 trusts, ranging in size from under £100,000 to many millions of pounds. This includes working with charitable trusts to ensure that they comply with the most recent regulatory requirements.
Our clients receive assistance in two key areas;
- Financial planning involving the strategic use of trusts
- Running and administration of trusts including preparation of tax returns, accounts and acting as trustee
Please contact a member of our team if you would like to discuss trusts further.
Mercer & Hole Trustees Limited is regulated by the Institute of Chartered Accountants in England & Wales for a range of investment business activities.
