Trusts & Gifts
Trusts & Gifts SOLICITORS IN READING & HENLEY
We can prepare simple Wills where appropriate, but also regularly advise clients on asset protection within Wills by setting up trusts, whether because of a vulnerable beneficiary or because inheritance tax planning is required. We can prepare trusts for disabled beneficiaries and also for business property assets, and we include advice pertaining to inheritance tax and capital gains tax as part of the standard scope of our work.
Our Wills, Trusts & Estates team can help to establish trusts either through a client’s Will or during their lifetime, to help protect and control wealth for the benefit of their family. Trusts enable people to place assets under the control of others, so that they have full responsibility to manage those assets for the benefit of whoever is chosen, according to a set of instructions. There are many different types of trusts and we can advise you on the different benefits of each type to assess which is appropriate for your circumstances. Trusts are treated separately for tax purposes and are assessed independently for inheritance tax, capital gains tax and income tax.
Trusts often come to a natural end but sometimes a decision may be made to wind up a trust early by the trustees. It is essential that the trustees consult the trust deed and our experienced team can help advise on how to carefully adhere to these procedures. The winding up of a trust can create significant tax liabilities and it is essential that professional advice is obtained to ensure that everyone is aware of their liabilities, and where they can be mitigated if possible.
There may come a time when you decide to make some lifetime gifts to your children, family or friends. Lifetime gifts are made for a variety of reasons: sometimes to help with a deposit for a house, or for the pleasure of giving a gift in lifetime and then living to see the recipient enjoy it, or perhaps for inheritance tax planning purposes.
Gifts between spouses during their lifetime or on death are exempt from inheritance tax and many gifts made more than seven years before death will escape tax. Therefore, if you plan in advance, gifts can be made tax-free and result in a substantial tax saving. However, careful consideration needs to be given to gifts, for example, a gift that saves inheritance tax may unnecessarily create a capital gains tax liability.
Whatever your reasons, we can advise you on the best way to make your gift tax efficient. We will consider your Will and other factors and advise on the options and pros and cons of absolute gifts or gifts into a trust. We can also review the types of trusts available in such circumstances and advise on which will be most suitable for your circumstances.
