{"id":820,"date":"2014-03-03T14:38:15","date_gmt":"2014-03-03T14:38:15","guid":{"rendered":"http:\/\/www.newsfin.co.uk\/news\/?p=820"},"modified":"2014-03-03T14:38:15","modified_gmt":"2014-03-03T14:38:15","slug":"trust-solutions","status":"publish","type":"post","link":"https:\/\/www.vizionwealth.co.uk\/news\/trust-solutions\/","title":{"rendered":"Trust solutions"},"content":{"rendered":"

Managing wealth<\/strong>
\nWe can advise you on a range of different trust solutions, each designed with a particular purpose in mind.<\/p>\n

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

Bare trusts<\/strong>
\nThese are where the assets in a trust are held in the name of a trustee but go directly to the beneficiary, who has a right to both the assets and income of the trust.<\/p>\n

Transfers into a bare trust may also be exempt from Inheritance Tax, as long as the person making the transfer survives for seven years after making the transfer.<\/p>\n

Interest in possession trusts<\/strong>
\nThese are trusts where the beneficiary is entitled to trust income as it’s produced \u2013 this is called their ‘interest in possession’.<\/p>\n

On assets transferred into this type of trust before
\n22 March 2006, there’s no Inheritance Tax to pay.<\/p>\n

On assets transferred on or after 22 March 2006, the 10-yearly Inheritance Tax charge may be due.<\/p>\n

During the life of the trust, there’s no Inheritance Tax to pay as long as the asset stays in the trust and remains the ‘interest’ of the beneficiary.<\/p>\n

Between 22 March 2006 and 5 October 2008:<\/strong><\/p>\n

– beneficiaries of an interest in possession trust
\ncould pass on their interest in possession to other beneficiaries, like their children<\/p>\n

– this was called making a ‘transitional serial interest’<\/p>\n

– there’s no Inheritance Tax to pay in this situation<\/p>\n

From 5 October 2008:<\/strong><\/p>\n

n beneficiaries of an interest in possession trust can’t pass their interest on as a transitional serial interest
\nn if an interest is transferred after this date, there may be a charge of 20% and a 10-yearly Inheritance Tax charge will be payable unless it’s a disabled trust<\/p>\n

If you inherit an interest in possession trust from someone who has died, there’s no Inheritance Tax at the 10-year anniversary. Instead, 40% tax will be due when you die.<\/p>\n

The treatment of trusts for tax purposes is the same throughout the United Kingdom. However, Scottish law on trusts and the terms used in relation to trusts in Scotland are different from the laws of England and Wales and Northern Ireland.<\/p>\n","protected":false},"excerpt":{"rendered":"

Managing wealth We can advise you on a range of different trust solutions, each designed with a particular purpose in mind.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/820"}],"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=820"}],"version-history":[{"count":0,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/820\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/media?parent=820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/categories?post=820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/tags?post=820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}