Trust Administration & Disabled Person’s Trusts 

Deeds of Appointment & Retirement

Trusts can be setup to provide income for specific beneficiaries whilst protecting the capital for other beneficiaries. They can also be set up to manage assets for children, the disabled or indeed anyone.

Disabled Persons’ Trusts can be used to provide for their specific needs without affecting their benefit entitlement. Trustees are appointed to manage the Trust Fund and administer the Trust when it ends.

Trusts for Minors can hold funds for children and young people until they reach a specified age.

Historically Trusts were employed for Inheritance Tax Planning, but are used less and less these days. Whilst Trusts can be very useful they tend to be expensive to administer, and necessitate complicated tax regimes.

Thorne Segar provides the necessary detailed advice and a complete service to establish and administer Trusts. We are frequently called upon to act as professional Trustees to ensure the trust is operated with the necessary expertise and impartiality. And also provide expert guidance regarding comprehensive Inheritance Tax and Capital Gains Tax planning.

Types of Trust:

  • Life Interest Trusts
  • Disabled Person’s Trusts
  • Discretionary Trusts
  • Nil Rate Band Discretionary Trusts
  • Trusts for Minors

FEES:

General trust advice – one hour appointment – £200+VAT

Life Interest Trust – £650+VAT

Discretionary Trust – £1,000+VAT

Disabled Person’s Trust – £1,000+VAT

Trust Administration – from £850+VAT upward per annum

Fees are quoted in advance and are fixed – with no hidden extras

Deeds of Appointment and Retirement

Trusts for Clubs and Associations

We can prepare a Deed of Appointment and Retirement of Trustees for clubs and associations to operate in accordance with the club’s rules or association’s constitution. Changes of Trustees are often required and the club/association’s property often has to be held in the Trustees’ names.

Fees for Deeds of Appointment and Retirement range from £375 – £850+VAT provided the rules and constitution are supplied at the same time.

FAQs

Can I avoid Inheritance Tax with a Trust?

This is no longer the case following a tax regime change in 2006. The tax regime for Trusts is now very complex.

Can I get assets (or funds) out of a Trust?

It depends on what type of trust it is. The trust deed needs to be considered first to establish who is entitled to what and whether the Trustees have the power to distribute assets.

It needs to be bourne in mind that it is easy to put assets into a trust, but not so easy to withdraw them. Often when assets exit a trust, inheritance tax is triggered. Capital Gains and Income Tax also need to be considered.

Therefore, obtain professional advice before putting assets into trust to ensure it is the right thing for you to do. There are lots of trust companies which actively encourage people to put assets into trust and it is not in the person’s best interests.

Obtain professional advice before extracting funds from a trust. If you are a Trustee you could become personally liable for any tax if you have distributed the trust fund and not retained sufficient money to cover any tax.

Trusts can be a useful way of providing for beneficiaries and protecting assets however it is important to obtain professional advice first.

Why not leave a legacy directly to a Disabled Beneficiary or another family member to take care of?

There are sometimes concerns about a Disabled Beneficiary’s ability to manage money and the receipt of a legacy could affect their benefit entitlement.

People sometimes leave money to other children to take care of a disabled beneficiary but if anything happens to them (e.g death or divorce) the money could be at risk and no real provision made for the beneficiary.

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Trusts can provide a wide range of advantages but their administration can be complex. Issues such as Tax, Trustees’ responsibilities and what happens when the Trust is no longer needed must be fully understood.

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CALL: 01643 703234