Beneficial in many different ways, trusts remain a popular choice to preserve your wealth for future generations often in a tax efficient manner.
However, trusts can be complex affairs and so to ensure they are established and managed correctly, we would always recommend comprehensive tax and legal advice.
In our specialist cross border space, we frequently come across UK tax issues in relation to US Trusts and US tax issues in relation to UK trusts.
We can advise on the options available to you and help you to find the most appropriate trust structure for your particular circumstance or review existing structures to provide a health check.
A good time to seek advice is:
- In advance of creating any trust
- If the trustee is moving to another country or is replaced by one resident in another country
- If a beneficiary is moving to another country or born in the US
- If new beneficiaries are added or acquired e.g. the new spouse of an existing beneficiary might be a US citizen
- If you are acquiring an asset in another country
- Periodically have the initial advice reviewed because laws change
What is a Trust?
A trust is a legal arrangement where you agree for someone to manage your assets such as money and other investments, in a manner stipulated by you, usually for the benefit of your family, e.g. children and grandchildren. There are many reasons why people set up trusts:
- To protect family assets for the next or multiple generations
- When someone is unable to handle their own affairs
- When someone is too young to handle their affairs
- To pass on assets when you die or while you’re still alive
- To protect life insurance proceeds from tax
- If someone dies without a will (under the rules of inheritance)
In the UK the tax benefits of trusts have been substantially stripped away but they still have great asset protection and management benefits. In the US there are multiple types of trust that can allow you to take advantage of income and estate tax benefits in the right circumstances.
How can we help?
With over 35 years of experience, Ingleton Partners will support and manage any financial requirements from trustees. We understand that trusts are complicated and our tax advisors will guide you throughout the process when it comes to:
- Trust Advice – taxation of trustees, taxation of beneficiaries
- Preparation of UK trust returns
- Preparation of US trust returns
- Inheritance Tax
- Income Tax
- Capital Gain Tax
- US income tax, gift and estate tax