Trusts and executorships

Take full advantage of these tax planning tools

Trusts are extremely useful instruments for tax planning purposes. They are particularly useful for holding shares in private companies as part of a family financial or tax plan - especially if you want to reduce inheritance tax liability in your estate.

They can also be useful for:

• Providing funds for your children's education, maintenance, etc.
  
• Restricting access to property by future beneficiaries
  
• Providing for people who are mentally or otherwise incapacitated
  
• Gifting to charity

There are four main types of trust:

1. Life interest trusts
   
2. Discretionary trusts
   
3. Accumulation and maintenance trusts
   
4. Bare trusts

The various types of trust are subject to differing treatments for tax purposes, and to further complicate matters, major changes to the inheritance tax treatment of trusts have now been proposed by the Chancellor in the Finance (No) 2 Bill 2006.

In order to take advantage of trusts in your tax and estate planning you will therefore require expert help and advice.

We can help you determine which types of trust are suited to your purposes, advise on the tax implications, prepare the necessary documentation, and advise on appropriate trustees.

Call 01332 346605 today to discuss how you can take advantage of this extremely useful tax planning tool.