Family Trusts & Asset Protection Cheltenham
Family Trusts…
Trusts are an effective way of safeguarding assets and providing for future generations.
Family Trusts & Asset Protection Cheltenham
Family Trusts…
Trusts are an effective way of safeguarding assets and providing for future generations.
What is a Trust?
A trust is a legal arrangement in which you, the settlor, transfer the ownership of your assets e.g. money, investments, property or land to a third party known as trustees, to hold on behalf of the trust’s beneficiary or beneficiaries, for example, your spouse, children, grandchildren. It’s the trustee’s role to manage the trust in line with your wishes.
Once your assets are assigned to a trust, they are no longer deemed to be personal possessions. This means that they are safeguarded from creditors and legal challenges.
A trust can be set up during your lifetime or you can write one into your Will, to take effect upon your death.
“I’m afraid I dumped the whole problem in Piercefield Oliver’s exceptionally capable hands. They found a brilliant accountant to advise on CGT, who identified and helped me appoint new offshore trustees. They sorted all the paperwork and spent time with me to gain an understanding of the family dynamics and my cousins’ actual needs. They reviewed the existing investments and created an investment strategy that will help support my cousins financially during their lifetimes.”
Sophie Butcher
We tailor your solution to your circumstances
“I’m afraid I dumped the whole problem in Piercefield Oliver’s exceptionally capable hands. They found a brilliant accountant to advise on CGT, who identified and helped me appoint new offshore trustees. They sorted all the paperwork and spent time with me to gain an understanding of the family dynamics and my cousins’ actual needs. They reviewed the existing investments and created an investment strategy that will help support my cousins financially during their lifetimes.”
Sophie Butcher
We tailor your solution to your circumstances
“In 2012, I was appointed Protector of a hugely complex off-shore family trust on behalf of two cousins one in the UK and one abroad, I was completely daunted.
While I have no expertise or experience in off-shore trusts, I knew enough to recognise all was not right. The corporate trustees were working with a firm of stockbrokers but it became evident to me that there was a big disconnect between the planning needs of my cousins and the way both institutions administered and managed the trust and its investments. All I could see was thousands of pounds a year being taken out in fees, and for what? There were major issues with capital gains tax that had never been addressed. The investment portfolio felt wobbly, with everything invested in a relatively small number of UK shares. All in all, I felt dangerously exposed as Protector.
My problem is that I didn’t understand the issues: I didn’t know trust law, I couldn’t come up with sound investment strategies, or get my head around capital gains tax.
I’m afraid I dumped the whole problem in Piercefield Oliver’s exceptionally capable hands. They found a brilliant accountant to advise on CGT, who identified and helped me appoint new offshore trustees. They sorted all the paperwork. They spent time with me to gain an understanding of the family dynamics and my cousins’ actual needs. They reviewed the existing investments and created an investment strategy that will help support my cousins financially during their lifetimes. They are now managing the investment portfolio.
Essentially, we discussed what I wanted to achieve, and Piercefield Oliver made it happen. I can now breathe easy knowing everything is shipshape and wisely invested for the long-term benefit of my cousins.”
Sophie Butcher
Some interesting facts about family trusts
14%
The latest statistics from the Trust Registration Service (TRS) in October 2022 indicate the use of Trusts declined by 14% over the last five years. This decline continues the long-term established trend across all the main types of trust.
6%
The number of trusts and estates that filed self-assessment tax returns fell by 6% in the 2020/21 tax year compared to the 2019/20 tax year.
£1,455m
The total UK income tax and capital gains tax generated by trusts and estates was £1,455m in the 2020/21 tax year. This represents an increase of roughly 5% from 2019/20.
Some interesting facts about family trusts
14%
The latest statistics from the Trust Registration Service (TRS) in October 2022 indicate the use of Trusts declined by 14% over the last five years. This decline continues the long-term established trend across all the main types of trust.
6%
The number of trusts and estates that filed self-assessment tax returns fell by 6% in the 2020/21 tax year compared to the 2019/20 tax year.
£1,455m
The total UK income tax and capital gains tax generated by trusts and estates was £1,455m in the 2020/21 tax year. This represents an increase of roughly 5% from 2019/20.
Book your free 30 minute consultation
Let us help you achieve your life goals by thinking ahead today...
Book your free 30 minute consultation
Let us help you achieve your life goals by thinking ahead today...
Get in touch
If you would like to set up a family trust, or require help managing an existing one, please get in touch with us using the enquiry form below giving us an indication of your current situation and requirements.
Frequently Asked Questions
A trust is a legal arrangement in which you, the settlor, transfer the ownership of your assets e.g. money, investments, property or land to a third party known as trustees, to hold on behalf of the trust’s beneficiary or beneficiaries, for example, your spouse, children, grandchildren. It’s the trustee’s role to manage the trust in line with your wishes.
Once your assets are assigned to a trust, they are no longer deemed to be personal possessions. This means that they are safeguarded from creditors and legal challenges.
A trust can be set up during your lifetime or you can write one into your Will, to take effect upon your death.
Yes. There are four main types of trust used for family trusts and these are:
Bare trusts: this type of trust is often used to pass assets to young people – the trustees look after them until the beneficiary is old enough.
Interest in Possession trusts: with this type of trust, the trustees must pass on all of the trust income to the beneficiary as it arises, however, the beneficiary doesn’t have the right to become the owner of the underlying capital. This type of trust is often used in Wills in order to give a spouse an income for life. Once the spouse is no longer around, the trust’s assets are passed on to the children.
Discretionary trusts: these are more flexible trusts in which the trustees have complete control over the assets and any income they generate. The trustees can decide how and when they dispense the assets and or income to the beneficiaries, who might be your children, grandchildren or even great-grandchildren.
This form of trust can be effective if you are unsure about the needs of your beneficiaries in the short, medium or long term.
Mixed trusts: this form of trust combines elements of different types of trusts. For example, it might give the beneficiary a right to the trust income but only on half of the trust fund.
Yes. Depending on the type of trust you set up they can be subject to a combination of taxes, including income tax, capital gains tax and inheritance tax.
Whilst family trusts can be a good way to pass on assets to future generations in a smooth way and preserve family wealth, the rules around trusts are complex in nature. Therefore it is important to seek professional advice when setting up a family trust to fully understand what’s involved and to also make sure the trust is tailored to your needs and objectives.