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Originally used for the protection and preservation of assets (primarily
land) and to ensure continuity of ownership, trusts have been developed
over the years in to one of the most efficient vehicles available
for the mitigation of taxation.
The existence of a trust can confer the dual benefit of capital
protection and tax saving, and the various changes in legislation
in recent years have made it important that a trust should not be
dealt with in isolation, but should be regarded as an integral part
of an overall financial strategy.
Straughans Specialist Trust Department provides the advice and assistance
required in the creation and management of lifetime settlements,
and the administration of deceased estates. In addition, Straughans
Directors are available to act as Trustee.
In conjunction with your legal advisers we can advise on the most
suitable type of settlement for your requirements. The most usual
trusts are the following:
• Discretionary;
• Interest in Possession;
• Accumulation & Maintenance;
• Charitable
These may have different tax implications for the settlor, for the
trust itself and for the beneficiaries.
We can also liaise with your investment advisor to consider the
most appropriate assets to be to be transferred into a particular
type of settlement.
Once the settlement has been created, we can deal with the day to
day management of the trust affairs.
We can also review the overall position at regular intervals, and
advise as to any possible changes.
It is a requirement under trust law that trustees keep adequate
records of their dealings with the trust property, and to this end
we will:
• Maintain records of all transactions.
• Prepare accounts, either
on annual basis or for whatever period may be appropriate.
Trustees are required to submit annual returns of income and chargeable
gains to Inland Revenue, together with details of income (and in
certain cases capital) paid or payable to the beneficiaries.
As part of our service we can:
• Deal with the preparation
and submission of the annual tax return;
• Advise as to distributions
to beneficiaries, supply tax deduction certificates and deal with
any repayment claims;
• Agree any liability including,
where necessary, negotiating with the Inland Revenue Share Valuation
Division or the District Valuer;
• Calculate the periodic and
proportionate charges to inheritance tax on discretionary trusts,
and submit the appropriate returns and accounts.
It may be that, because of changes in the circumstances or requirements
of the beneficiaries, or legislation, an existing trust no longer
serves the purposes for which it was originally intended. In such
cases it is often possible, either by the exercise of a power contained
in the original deed or by the beneficiaries acting in concert,
to wind up the trust.
We can advise as to the feasibility of breaking the trust, and the
tax implications thereof, and deal with the computations and returns
for income tax, capital gains tax (including hold-over elections)
and inheritance tax. We will also deal with the preparation of the
distribution accounts.
If an individual dies without making a valid Will then the assets
of his or her estate will pass in accordance with the laws of intestacy.
This may mean that full advantage is not taken of the various exemptions
and reliefs available, and may also mean that persons who were not
intended to do so become entitled to benefit from the estate.
It is important, therefore, to ensure that you have made a valid
Will, which clearly sets out the intended devolution of your estate.
It will also be necessary to review this periodically to take account
of any changes in personal and family circumstances.
We can…
• Assist your solicitor in
the drafting of your Will;
• Assist in the identification,
collection and valuation of assets;
• Prepare the relevant returns
for inheritance tax and agree any liability:
• Assist, if required, in obtaining
the grant of probate;
• Deal with re-registering
of investments etc;
• Prepare the executors/trustees
tax returns;
• Prepare estate and distribution
accounts;
• Assist generally in the administration,
including the keeping of the estate records;
• Advise on the most tax efficient
means of distribution, including deeds of variation.
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