Trusts and Executorships
Trusts are relatively easy and very tax efficient way to set aside assets for future beneficiaries outside of the inheritance tax net. They can also be useful for:
- Providing funds for your children’s education, maintenance, etc.
- Restricting access to property by future beneficiaries
- Providing for people who are mentally or otherwise incapacitated
Trusts are structures that ensure your assets pass on to your stated beneficiaries. They are often an efficient way of reducing the inheritance tax liability on your estate, as well as preventing unintended beneficiaries from receiving assets, for example in instances of divorce.
Some trusts – ‘trusts for vulnerable beneficiaries’ – benefit from special tax exemptions and are designed for providing for children under 18 should their parents die or for disabled persons of any age.
There are many different types of trusts for different purposes, each with different tax implications. This is a complex area, so we would always recommend getting professional advice to help you make an informed decision on the best option available to you and your family.
Tuchbands will gather a full understanding of your reasoning behind wanting to set up a trust and for what purpose, before making a recommendation.
We work alongside specialist trust lawyers who can set up your trust and complete all relevant documentation. They can advise you on the preparation of wills and setting up power of attorney. Where needed, we can act as trustees or executors. and provide accounting services for the trust going forward.
An executor sorts out your will after you die, so it’s important to choose the right person as it’s a difficult role. Common things they might have to dedicate their time and money to include deciding when to sell your property so that the people who inherit the proceeds get the most money and making sure the right amount of tax gets paid.
That’s why it’s often best to use the services of an expert like Tuchbands with a full knowledge of legal, tax and property laws.
Trusts and executorships can be a sensitive area but when you are ready to talk, we’ll be here to guide you through the process.
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