Trust Creation and Administration

The Right Choice of Trust
Furse Sanders & Co are ready to advise how the use of Trusts can assist you in tax planning, preserving assets, and practical wealth management.

Careful consideration needs to be given not only to ensure that the most appropriate form of trust is used, but also that the tax implications are considered to ensure that the most favourable outcome is achieved.

Trusts can be created during your lifetime, or through your Wills, and may in some cases come into existence as a result of the applications of law.

Here are some of the specialist Trusts that Furse Sanders & Co can help to create for you, each one will be tailored to your specific needs;

1. Fixed Life Interest/Income Trusts
These Trusts are useful where you would like to give assets away which can provide an income to one person for a fixed period (perhaps for their lifetime) but when this period ends, the assets will safely pass to a third party. These are particularly useful in second marriages, or to assist individuals whose circumstances means that they are unable to manage their finances but for whom you would like to provide a regular income.

In addition, these trusts can be used to make immediate gifts to younger family members, such as grandchildren, in such a way that the person making the gift can retain control over the trust. This means that money can be released to the grandchildren, only when you are satisfied that the money will be sensible used.

2. Non fixed/ Discretionary Trusts
Discretionary trusts are widely used and have a variety of useful and varied applications.
Under a discretionary trust the trustees will hold money or investments for the benefit of a range of people or organisations. It is then up to the trustees to decide who should receive money from the trust.

Because no one can force the trustees to give money away to them even though they may be named as beneficiaries, these trusts are useful to protect against claims by the Benefits Agency, Local Authority, and parties to divorce proceedings.

Using discretionary trusts will also leave decisions as to who should benefit and under which circumstances. For example, if you create a trust for your grandchildren, you could ask your trustees to provide funding for the grandchildren's education for as long as the trustees think is appropriate.

3. Accumulation and Maintenance Trusts
These are a special kind of discretionary settlement which benefit children or grandchildren who are under the age of 25, and which used to benefit from the special tax breaks given to them. See also our article regarding the changes for 2006x

4. Personal Injury Award Trusts
If you have received or are likely to receive an award as a result of an accident or injury, or as a result of medical negligence your entitlement to means tested benefits could be preserved if your award is protected in a special kind of discretionary settlement. If this is not prepared in time you must declare the award, which in turn may cause your benefits to stop.

5. Vaccine Damage Payments
We can also provide specialist advice on how best to deal with payments received from the Department of Social Security for individuals who suffered injury as a result of vaccinations as children. In these cases the Government provides the basic trust form, which, when combined with careful interpretation and application, can provide a secure framework in which the fund can be managed and protected.

6. Trusts for Disabled beneficiaries
Furse Sanders & Co have the expertise to help you to provide for loved ones who may be physically or mentally disabled. These trusts may help to maximise their state benefits, make sure that there is always going to be someone they can trust to manage their finances, and also make maximum use of the special tax treatment of these trusts.

7. Trusts for Charities
You may choose to create a trust to benefit your favourite charities, or you may create your own particular charity perhaps to benefit a particular group of people or purposes close to your heart. You may choose to take advantage of the tax savings, which would result from this kind of charitable giving.

8. Tax Matters
It is very important to obtain accurate tax advice when considering the creation of trusts, and each different type of trust will be subject to a different regime for Income Tax, Capital Gains Tax and Inheritance Tax. Our tax advisors are prepared to carefully assess your position to advise on how the tax will affect you.

If you own a business or are involved in farming there are other kinds of trusts that will take advantage of the special treatment of business and farming assets.

9. Miscellaneous
There is a whole host of other occasions when a trust could help you to plan for the future, whether this is to plan for the reduction of taxes, or the arrival of unknown grandchildren, or for financial difficulties of those who are closest to you.

Trust Administration Department
However a trust is created it is essential to choose the best professional advisors to ensure that your Trust continues to be run in the most efficient way.

Careful thought must be given to the choice of investment advisor, accountant and legal advisor. Furse Sanders & Co can help you to make these choices.

Furse Sanders & Co will provide support and advice on all aspects of trust administration, both for new and existing trusts.

Our systems and procedures will ensure that you receive the best quality advice for a realistic professional charge.

We can assist in completing annual accounts, tax returns, reviewing the performance of trust assets, re-arranging trustees, hosting trustees meetings, and tracing beneficiaries.

If you are struggling to administer a trust yourself then feel free to talk to one of our advisers who will help you re-structure the trust to improve it's performance and to reduce your administrative burdens.

Being a trustee is a big responsibility, and Furse Sanders & Co is here to help.