As your life changes over time, it’s important to ensure that your financial objectives continue to meet your needs. The structures into which you transfer your assets will have lasting consequences for you and your family. Succession planning enables a smooth transition to the next generation, and it also enables you to minimise potential tax liabilities.

Generally, trusts are set up for tax planning or asset preservation purposes. Trusts give Capital Gains Tax and Inheritance Tax advantages, but the rules are inevitably complicated. Trustees are also taxed in their own right, therefore they will need to complete annual Tax Returns and ensure that the rules are fully complied with.

A trust is a legal arrangement. It allows the owner of property to transfer legal ownership of that property to another person or company. The person or company receiving the property holds onto it for the benefit of a third party, called the ‘beneficiary’. The person transferring the property is called the ‘settlor’. Under the laws of England and Wales, anyone over the age of 18 who is mentally able can be a settlor. The person or company holding onto the property is called the ‘trustee’. Under the laws of England and Wales, a trustee must be over the age of 18. They should also be mentally able and have a sound financial history.

Protecting the estate you have worked hard to build is essential but often put off until too late. With the correct planning in place, you can ensure that your wealth passes to the right people at the right time, and in a manner that provides protection and is efficient for tax purposes. We can help you to identify planning opportunities that could benefit you. If you would like more information, please contact us on 02380 420 606 to discuss your requirements.