Trusts & Tax

Trusts

A Trust arises where assets are held by individuals (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 or need protecting from themselves. 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 and to avoid unintended consequences. Most Trusts now need to register details of the Trustees and main Beneficiaries.

Hart Reade has an experienced department used to dealing with different types of Trust. Whether you wish to set up a Trust for the benefit of your grandchildren, discuss Inheritance Tax planning through a Trust, discuss how to set up a Trust within your Will to protect your home from care home fees or anything else, we can identify and explain the options available, their benefits and disadvantages, the tax consequences and ongoing management requirements, and the cost.

There are many different reasons for setting up a Trust and whether this is for tax planning or something else, we can discuss with you the options available through lifetime giving to a Trust or by incorporating a Trust within 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

Where relevant to the type of Probate, Trust or Management matter we might assist you with, we can also provide you with guidance on any tax requirements arising from that work and, where applicable, assist with the completion of the appropriate tax returns and other forms required by HM Revenue and Customs.

The system of tax self-assessment means it is 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 HM Revenue and Customs that you have a tax liability.
• for failing to deliver to HM Revenue and Customs any Tax Return due from you on time.
• for failing to keep records of your income and capital gains for a 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 some of our clients and we can give guidance on proper record keeping. In particularly complex cases we have easy access to specialist tax advice and can advise on tax mitigation and appeals.