{"id":1545,"date":"2016-03-03T09:34:11","date_gmt":"2016-03-03T09:34:11","guid":{"rendered":"http:\/\/www.bwmltd.org\/wordpress\/?p=1545"},"modified":"2016-03-03T09:34:11","modified_gmt":"2016-03-03T09:34:11","slug":"trust-solutions-3","status":"publish","type":"post","link":"https:\/\/www.vizionwealth.co.uk\/news\/trust-solutions-3\/","title":{"rendered":"Trust solutions"},"content":{"rendered":"

Different trust solutions to managing your wealth <\/strong><\/p>\n

Some\u00a0types of trust\u00a0are treated differently for Inheritance Tax purposes.<\/p>\n

Some people would like to make gifts to reduce Inheritance Tax but are concerned about losing control of the money. This is where a trust could help. The rules changed in 2006, making some of them less tax-effective, as a small minority will require you to pay Inheritance Tax even before you have died, but they\u2019re still worth considering.<\/p>\n

When talking about trusts, you will hear the terms:<\/strong>
\n\u2022 Settlor\u00a0\u2013 the person setting up the trust
\n\u2022 Trustees\u00a0\u2013 the people tasked with looking after the trust and paying out its assets
\n\u2022 Beneficiaries\u00a0\u2013 the people who benefit from the assets held in trust<\/p>\n

There are now three main types of trusts. Any number of different types of investments can be held in a trust, so you should obtain professional advice to decide which is best for you.<\/p>\n

Bare (Absolute) trusts
\n<\/strong>With a bare trust, you name the beneficiaries at outset, and these can\u2019t be changed. The assets, both income and capital, are immediately owned and can be taken by the beneficiary at age 18 (16 in Scotland).<\/p>\n

Interest in possession trusts<\/strong>
\nWith this type of trust, the beneficiaries have a right to all the income from the trust, but not necessarily the capital. Sometimes, a different beneficiary will get the capital, for example, on the death of the income beneficiary. They\u2019re often set up under the terms of a will to allow a spouse to benefit from the income during their lifetime but with the capital being owned by their children. The capital is distributed on the remaining parent\u2019s death.<\/p>\n

Discretionary trusts<\/strong>
\nHere the trustees decide what happens to the income and capital throughout the lifetime of the trust and how it is paid out. There is usually a wide range of beneficiaries, but no specific beneficiary has the right to income from the trust.<\/p>\n

A few trusts will now have to pay an Inheritance Tax charge when they are set up, at 10-yearly intervals and even when assets are distributed.<\/p>\n

The treatment of trusts for tax purposes is the same
\nthroughout the United Kingdom.<\/p>\n

However, Scottish law on trusts and the terms used
\nin relation to trusts in Scotland are different from the
\nlaws of England & Wales and Northern Ireland.<\/p>\n","protected":false},"excerpt":{"rendered":"

Different trust solutions to managing your wealth Some\u00a0types of trust\u00a0are treated differently for Inheritance Tax purposes.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1545"}],"collection":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/comments?post=1545"}],"version-history":[{"count":0,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1545\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/media?parent=1545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/categories?post=1545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/tags?post=1545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}