Trusts play an important part in lifetime planning as a means of tax mitigation or structuring wealth across different generations and our team can help you on the administration and taxation of all types of trusts
In simple terms, a trust is a means by which certain individuals (known as trustees) hold money or other types of assets for one or more beneficiaries. There are many reasons why a person may want to create a trust, but predominantly they are used to preserve family wealth by maximising available tax reliefs or to safeguard assets for future generations.
Addleshaw Goddard advises on the increasingly complex inheritance tax and capital gains tax implications of creating trusts; drafts the appropriate trust documents; and advises on the restructuring of existing trusts to meet family, tax and other objectives.
The role of a trustee is a crucial and demanding one. The trustee must administer the trust as set out by the trust deed and in law. As the name suggests, a trustee is in a position of trust and is required to balance the needs of all beneficiaries, taking into account the wishes of the person who created the trust, while ensuring he is acting within the boundaries of the trust deed and the law in general. Not only do we advise lay trustees of their ongoing duties, but often partners of the firm or our in-house trust company act as professional trustees.
It has become increasingly common for clients to ask us to advise on contentious matters relating to the administration of trusts. We have acquired a considerable amount of experience in this area, drawing on our expertise in both litigation and private client matters.
We act for the trustees of more than 200 trusts, including both charitable and private family trusts, which hold approximately £1 billion of trust assets.
We provide trustees with a comprehensive and cost effective service and would be happy to discuss any issues you may have in your role as trustee.
There are many points a trustee must consider when dealing with the administration of a trust. The AG private capital department acts for many trustees and we have a dedicated trust administration team who are able to assist with the administration of trusts and advise trustees on all aspects generally.
We assist with:
- Advice on trust structures for tax planning and wealth management purposes, including charitable trusts
- The preparation of:
- Annual accounts and general bookkeeping
- Annual tax returns
- Inheritance tax accounts and correspondence with HMRC
- Arranging distributions to beneficiaries
- Administration and monitoring of investment and property portfolios
- Arranging the delegation of trustees duties to third parties such as investment advisers and land agents
- Maintaining accurate trust records and documenting, where appropriate, the trustees' decisions
- Advising the trustees on their duties ensuring compliance with the trust deed and law
- Updating trustees on any changes to the law which affect their role