Trust Planning

Setting up a Trust Fund to avoid Inheritance Tax

Trusts are generally legally referred to as Settlements. Trusts are a separate legal entity, so any assets gifted to a Trust will fall outside of your Estate after seven years. As Trusts can be complex in their legal wording, we use some of the best Lawyers in the country to draft them.

What is a Trust?

(8:17 minutes)

The disadvantages of a Will Trust

(9:26 minutes)

Why set up a Lifetime Trust?

(8:24 minutes)

What are the benefits of an Excluded Property Trust

(7:44 minutes)

Can I put a property into trust

(2:40 minutes)

A Trust to suit everyone

(14:12 minutes)

There are more videos available below the next section

We help people with over £1 million in current assets pay ZERO in UK inheritance tax

One stop comprehensive specialist advice - Tax, financial planning and legal advice service with 18 years experience.

What are the interactions with HMRC when setting up and running a trust?

(4:44 minutes)

What is an inheritance tax loan trust?

(6:09 minutes)

How much money can I put into a Trust?

(2:32 minutes)

What is a loan trust and why is it useful for inheritance tax planning?

(3:05 minutes)

Why is a Flexible reversionary trust so useful for inheritance tax?

(2:57 minutes)

What is the problem with a free trust supplied by an insurance company

(4:27 minutes)

There are more videos available below the next section

What our clients say
Read our 118
    
reviews

"It is gratifying to finally come across an adviser who gives sensible ongoing advice which is very client focused."

Frank Hibberd

Retired gentleman

"It is nice to know that we can now be certain that our daughter will inherit our money without giving a large slice of it to the government ."

Tony & Sue Perriss

"Everyone's situation is different but having an initial discussion with Charles has really helped me personally navigate what can be a daunting subject."

Bobby Chadda

"I particularly want to thank you for the open and transparent manner in which you have serviced my tax planning needs since I first met you seven or so years ago. In arranging my tax planning through you, I have confidence"

Michael Mahon

Retired gentleman

"Charles was really helpful from the outset and quickly clarified our situation for us... I have used Bluebond for  IHT and other tax advice and they have been very helpful with both. Charles is a very experienced and knowledgeable individual and I highly recommend Bluebond's services."

Sam Attenborough

Retired gentleman

I have used Bluebond for setting up a discretionary trust for my children as well as inheritance tax and estate planning for my home and  other properties. Having searched for years, it was only after meeting and speaking with Charles that I felt confident enough to take these next steps, and I'm very glad I did. His ability to explain complex issues in simple terms and walk you through every step of the process is quite simply unparalleled.

Imran Qureshi

Excellent and comprehensive advice concerning all things financial in one place. Enthusiastic, Educational, Expert, value oriented, Professional and Polite are adjectives that come to mind as well as great attention to detail.

Deirdre Buckley

Inheritance tax is a minefield. Charles de Lastic of Bluebond Tax Planning is the best in the business at helping you to chart the path that is right for you to ensure your estate is structured in the most tax efficient manner.

Nicholas Dickinson

Charles provides clients with valuable insights that clearly demonstrate expertise built over the years. Charles and his team guided us through a estate planning journey and then addressing complex Inheritance Tax matters. They have been very transparent with their advice and cost. Overall an excellent service. Highly recommended

Shailesh Karia

Why do you recommend a non-family member to be a Trustee?

(3:23 minutes)

Can a spouse of one of my children be supported from my trust?

(2:22 minutes)

How does leaving my assets to a trust protect my children if they get divorced?

(5:53 minutes)

One of my children lives abroad – Can they be a trustee or benefit from a Trust?

(2:14 minutes)

What happens if my children have insufficient funds to repay a loan from my Trusts?

(3:03 minutes)

Why is a lifetime trust better than a Will Trust for UK inheritance tax?

(3:45 minutes)

There are more videos available below the next section

We help people with over £1 million in current assets pay ZERO in UK inheritance tax

One stop comprehensive specialist advice - Tax, financial planning and legal advice service with 18 years experience.

What is an expression of wishes document for a trust?

(3:30 minutes)

Can the expression of wishes letter be changed?

(2:48 minutes)

What are the tax implications of transferring property assets into a trust

(3:42 minutes)

How does an Employee Benefit Trust avoid Capital Gains Tax?

(7:29 minutes)

What is the best way to set up a trust for grandchildren?

(6:49 minutes)

How do I choose an independent trustee?

(2:47 minutes)

There are more videos available below the next section

What our clients say
Read our 118
    
reviews

"It is gratifying to finally come across an adviser who gives sensible ongoing advice which is very client focused."

Frank Hibberd

Retired gentleman

"It is nice to know that we can now be certain that our daughter will inherit our money without giving a large slice of it to the government ."

Tony & Sue Perriss

"Everyone's situation is different but having an initial discussion with Charles has really helped me personally navigate what can be a daunting subject."

Bobby Chadda

"I particularly want to thank you for the open and transparent manner in which you have serviced my tax planning needs since I first met you seven or so years ago. In arranging my tax planning through you, I have confidence"

Michael Mahon

Retired gentleman

"Charles was really helpful from the outset and quickly clarified our situation for us... I have used Bluebond for  IHT and other tax advice and they have been very helpful with both. Charles is a very experienced and knowledgeable individual and I highly recommend Bluebond's services."

Sam Attenborough

Retired gentleman

I have used Bluebond for setting up a discretionary trust for my children as well as inheritance tax and estate planning for my home and  other properties. Having searched for years, it was only after meeting and speaking with Charles that I felt confident enough to take these next steps, and I'm very glad I did. His ability to explain complex issues in simple terms and walk you through every step of the process is quite simply unparalleled.

Imran Qureshi

Excellent and comprehensive advice concerning all things financial in one place. Enthusiastic, Educational, Expert, value oriented, Professional and Polite are adjectives that come to mind as well as great attention to detail.

Deirdre Buckley

Inheritance tax is a minefield. Charles de Lastic of Bluebond Tax Planning is the best in the business at helping you to chart the path that is right for you to ensure your estate is structured in the most tax efficient manner.

Nicholas Dickinson

Charles provides clients with valuable insights that clearly demonstrate expertise built over the years. Charles and his team guided us through a estate planning journey and then addressing complex Inheritance Tax matters. They have been very transparent with their advice and cost. Overall an excellent service. Highly recommended

Shailesh Karia

Can a trust asset be allocated to unborn children or grandchildren?

(2:09 minutes)

Can a trust lend money to buy a property?

(2:54 minutes)

How to set up a trust if your beneficiaries live abroad?

(3:01 minutes)

Should I use a discretionary trust or an Employee Benefit trust to hold my company shares?

(4:49 minutes)

Should I use a disabled person's trust or a discretionary trust?

(4:01 minutes)

Lifetime Trust Benefits

1. Protect your entire Estate in event of your children becoming divorced or bankrupt

2. Protect your entire Estate if your children predecease their spouse

3. Avoid inheritance tax being paid on your Estate by your grandchildren when your children die – double taxation

4. Obtain Double Taxation Relief on the value of a Limited Company if you are small business owner

Trust FAQ

What is a Trust?

A Trust is a legal arrangement where the person or persons who own an asset can transfer the ownership to Beneficiaries of the Trust (usually their children or grandchildren). The distribution of capital or income is controlled by the Trustees. The Trustees are usually the parents and sometimes also the adult children. These adult children can be both Trustees and Beneficiaries.

Who is involved in setting up a Trust?

There are normally three parties involved in setting up a Trust:

1. The Settlor.  The Settlor sets up the initial asset e.g. an insurance or pension contract and then transfer the control of the assets to the Trustee.
2. The Trustee.  The Trustee is the legal owner of the assets and holds and manages them for the benefit of the Beneficiaries.
3. The Beneficiaries.  The Beneficiaries are the individuals or groups of people selected by the Settlor to receive the benefits of the Trust.

Difference between Will and a Trust

Many people believe a Will is as effective as a Trust, but this is not always true.  As well as being more effective than a Will for mitigating IHT, using a Trust has other advantages.

Wills

Trusts

Only effective on death

Wills only come into effect on death and therefore are at risk from changes in legislation.

Immediately effective

Trusts provide certainty, as they are immediately effective. Changes in legislation will not normally affect existing Trusts.

Probate still needed

Even when a person has made a Will, Probate is still needed.

No Probate

Assets under a Trust are not subject to the delay of Probate, as long as there is a surviving Trustee. Extra legal costs are usually involved in running a Trust.

Extended administration

With the assistance of one of our strategic partners, we can help you arrange a Will that is correctly worded. We can also help you plan your investments.

Simplified administration

With a Trust IT is possible to organize investment and Estate planning together-we offer different Trusts for different asset classes.

Public

Wills become public on death, so everyone can see who received what.  This is not ideal in complex family situations.

Confidential

Trusts are confidential. Details are not available to the public.

Can you, the Settlor, benefit from the Trust?

If you are a settlor you cannot benefit from your own Trust. If you did benefit, the assets in the Trust will have the Gifts with Reservation of Benefit rules applied by HMRC and so the Trust would fail to avoid inheritance tax. Once you die your widow or widower can benefit from certain Trusts.

What happens if the Beneficiary dies?

As potential Beneficiaries of a Discretionary Trust do not have a right to the Trust assets if a Beneficiary dies, none of the value of the Trust property will be included in his or her Estate for IHT purposes.  This would not be the case had an Interest in Possession Trust been used.

Can the Settlor change the Beneficiaries?

The Trustees will have total control over the Trust funds and the discretion to pay out monies to whomever they feel it appropriate, from the various classes of Beneficiaries.
This means that should any Beneficiary in the future be in receipt of state or local authority benefits, the entitlement to money from the Trust fund will not stop these benefits being paid to the Beneficiary. Of course, there is a further benefit which means that should your spouse/partner become involved in any further relationship following your death, the assets within the Discretionary Trust will be protected from this third party acquiring them.

Can the Settlor end a Trust

Once you have written a policy under Trust, you have no power to end the Trust other than in your capacity as a Trustee.  The only action you can take is to stop paying the premiums for affected policies.
The Trustees may be able to advance all the Trust property to Beneficiaries so nothing is left in the Trust, thus bringing it to an end.

Do I need advice to setup a Trust?

Yes, Trusts, as you can see from all of the above, can be complex and require experienced advice and help to obtain the many benefits they provide.

The information contained in this web site is for UK consumers only.  Like most firms of solicitors and accountants, Bluebond Tax Planning is not regulated by the FCA. The content of this website does not constitute FCA regulated financial advice and all content is provided for general information purposes only. Bluebond is not responsible for any action you may take as a result of information on this site. All advice will be delivered on a personal basis once we fully understand your situation and our client agreements have been signed.

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