Taxation Services
Trusts / Estates
Trusts are currently in use for a variety of tax related purposes. In particular they are used for the mitigation of tax liabilities whilst enabling the client to retain some influence over the eventual use and destination of the trust property.
The following are some of the chief uses to which trusts are currently put for UK tax planning purposes.
- To make gifts whilst retaining control over property.
- To provide for children whilst they are young.
- To provide for the passing over of control in family companies to the younger generation.
- To transfer funds immediately on death (e.g., life policy death benefits).
- To mitigate Inheritance Tax.
- To mitigage Income Tax.
- To mitigate Capital Gains tax.
- To provide a means of protecting assets from individuals or creditors where an individual or business may be in financial difficulty.
- To provide a means of crystallising tax reliefs which may be in jeopardy; e.g., retirement relief before 5/4/2003.
- To ensure financial provisions for an individual whilst retaining control over the use or destination of the capital after that person’s day.
- To provide a possible means of removing assets or income from one tax jurisdiction to another, e.g. the use of offshore trusts.
Trusts are often overlooked in tax planning but can play a very important role, particularly in dealing with valuable assets, like family shareholdings or business property, where it is desired to introduce younger members of the family to the business in a controlled manner without immediately running the risks which outright gifts of share ownership might entail.
Pierce has an experienced team offering a complete Trust accounting service providing transparency for Trustees and Beneficiaries.
Range of services include
- Production of Trust Accounts
- Calculations of liabilities of Trustees
- Completion of Trust Tax Returns
- Preparation of information for Beneficiaries tax returns
- In House advice from independent financial advisers.