Ensuring your family is taken care of after passing is very important and understandably daunting. Simply passing your financial assets on in your Will or as gifts while you're alive can be risky and inefficient. Our Wills, Trusts and Probate experts can help you set up a trust to make sure that your family gets the most out of your assets. We offer a 30-minute consultation with one of our experts to help you understand your options. Call today to book.
What is a family trust?
Family Trusts can be an important and highly useful asset when it comes to estate planning. Not only can family trusts be a vital tool in ensuring an efficient transition of wealth to your family members, but they can also:
- Protect assets for family members who can’t look after assets themselves.
- Protect your estate from business creditors or divorcing spouses.
- Prevent an inheritance from affecting a family member’s benefit allowance.
- Provide for young children whilst remaining income tax efficient.
- Provide for a current partner as well as children from a previous relationship.
- Protect family members’ estates from large inheritance tax bills when they die.
- Reduce your spouse’s tax burden in the event of your death.
Our solicitors are experts in wills, trusts and probate, and will be able to help you protect assets and wealth for the benefit of your family.
How do I set up a family trust?
When setting up your trust, you choose the people who will look after your assets – the trustees - and who will benefit from them – the beneficiaries.
You can leave instructions for how the trustees should manage the assets and how they should distribute the assets.
The trust will continue to protect your assets after you have passed away or have lost the capacity to manage your affairs.
You don’t need any special qualifiers to apply for a trust. If you believe you would benefit from a trust, then contact our legal team today.
Setting up a trust is a very precise process that needs to be carefully worded and checked for any legal loopholes. To set up a trust, it's vital to employ the services of an expert.
At Jackson Lees, we have an established legal team that specialises in matters of wills, trusts, and probate. Our legal experts have decades of experience and can assist in all matters.
Call today to receive the best legal advice for you.
Do I have to pay capital gains tax?
Capital Gains Tax is a tax on the profit when you sell an increased-value asset.
The gain you make is taxed, not the amount of money you receive. For example, if you bought a painting for £5,000 and sold it later for £25,000, you’ve made a gain of £20,000.
Capital Gains Tax might be payable:
If assets are put into a trust tax is paid by either the person:
- Selling the asset to the trust
- Transferring the asset (the ‘settlor’)
If assets are taken out of a trust:
- The trustees usually have to pay the tax if they sell or transfer assets on behalf of the beneficiary.
- There’s no tax to pay in bare trusts if the assets are transferred to the beneficiary.
Sometimes an asset might be transferred to someone else, but Capital Gains Tax is not payable.
Is a family trust the right trust for me?
Other trusts are available, and understanding which trust is right for you depends on many factors, including:
- Your financial situation
- The situation of the trustee
- How you want your assets to be managed in the trust
- Who you want to maintain control of your trust
- The purpose of the trust
Establishing and maintaining trust can be a very time-consuming and complicated task. If you would like advice on which trust fund would be best for you, or if you need practical help with the administration of your Trust, call Jackson Lees solicitors today or make an enquiry form and our experienced team will be glad to assist you.