Trusts & Tax

Trusts

A Trust arises where assets are held by individuals or a Corporation (such as a bank) (Trustees) for the benefit of others (Beneficiaries). A Trust can be a useful device in defining and protecting the interests of beneficiaries who may have different financial requirements. They can provide tax and other advantages. But there are strict rules which apply and expert knowledge is required to comply with the requirements of the law and, above all, to ensure that a Trust is only employed where it is likely to be beneficial. There are certainly situations where our system of tax will make a Trust inadvisable. For example, a wrong decision could result in the person setting up the Trust (the Settlor) being taxed on all the income arising under the Trust even though control of those assets has been wholly given up.

Hart Reade has an experienced department used to dealing with different types of Trust. Whether you wish to pay your grandchildren’s school fees or protect your assets for your children or grandchildren, or make some other provision, we can identify the options available, their benefits and disadvantages, and the cost.

We can discuss with you the options for tax planning through lifetime giving to a Trust or by incorporating a Trust into your Will.

If you believe that setting up a Trust may help you to organise your affairs in the way that you wish, please do not hesitate to contact us for an early meeting. We will be happy to discuss the options available to you and their likely cost.

Tax

The Government has introduced a system of tax self-assessment. That has made it even more important for every individual to be aware of his or her own tax position. The Government now imposes strict penalties:

• for failing to report to the Revenue that you have a tax liability;

• for failing to deliver to the Revenue any Tax Return due from you on time;

• for failing to keep records of your income and capital gains for relevant period;

• for failing to pay any tax due.

Hart Reade can help you to comply with the requirements imposed by law. We complete tax returns for many of our clients and we can give guidance on proper record keeping. In particularly complex cases we have easy access to specialist tax advice.