Succession Planning Using Trusts.
By thinking about succession planning and inheritance tax mitigation on your death, one of the most effective vehicles to pass on wealth is to set up a lifetime trust. A lifetime trust can act as a tool to mitigate inheritance tax and allow you to preserve the family wealth, but start to filter it down to the earlier generations.
Inter-generational wealth planning is the most effective way to reduce your exposure to IHT and retain control of the gifted assets. At Vault Private Client, we can advise you on the practicalities and implications of setting up the trust and advise on whether it is suitable for your portfolio of assets and family structure.
The IHT advantages of such trusts have been significantly curtailed since 2006; those created post-2006 are now subject to a more stringent tax regime and trust registration requirement. The aim was to promote transparency about the existence of trusts and assets held within them.
The result of this is that trusts are arduous and require intricate drafting and bespoke advice to get them right.
Our proficient solicitors will advise you thoroughly on the possibility and consequences of setting up the trust, and you should take such advice before incorporating trusts into your tax and succession planning.
How Trusts Help You To Protect Your Wealth For The Future.
Trusts are attractive tools to divert assets outside your estate by passing wealth to the younger generation but retaining control of them at the same time.
The practicalities of setting up the trust are bespoke; however, our solicitors are here to make it simple for you. It involves a legal arrangement between the Trustees (the people who make the decisions and manage the money/assets) for the benefit of your chosen beneficiaries (i.e. children, grandchildren or third parties). There are numerous advantages to this sort of planning, including:
- Diversion of assets outside your estate and reducing the value of your estate
- Management of assets for beneficiaries to protect against immaturity/divorce/vulnerable or minor beneficiaries
- Passing down wealth to begin lifetime gifting
- Planning the future of your business to benefit future generations, but retaining control of the day-to-day management of the company
There are numerous reasons why setting up a trust is suitable for many individuals, however, the management and administration of family wealth can be complex and time-consuming.
Our dedicated and coherent solicitors will be able to advise young people setting up the trust to ensure validity, simplicity, and overall, ensure it is right for you. We understand that a trust is not a one-size-fits-all structure.
It is our passion to deliver professional and individual advice to each client and take every opportunity to understand your circumstances and how that can be reflected in a trust.
A private client solicitor oversees the entire process and formation of a lifetime trust, which includes:
- Initial meeting to advise you on the tax implications of setting up the trust and the amount to be transferred into the Trust.
- Assist with the practical bespoke drafting to create the Trust deed;
- Register the Trust with the HMRC Trust Registration Service
- Assist with opening trust bank accounts and liaising with the top financial advisors in your area;
- Prepare transfer documentation to transfer the assets into the trust.
- Advise and assist with tax returns and trust administration on an ongoing basis;
- Ongoing taxation advice (i.e. ten ten-year anniversaries and tax returns); and
- Amending and registering your deeds with third parties to reflect the change of ownership.
We’re a full-service private wealth practice with teams covering every conceivable aspect of setting up lifetime trusts and inheritance tax planning. Therefore, if you need support with setting up trusts, lifetime gifting, setting up a will or any other estate planning issue, our expert team can provide advice and assistance with your queries.
THE BEST IN THE BUSINESS.
Our experienced team works closely with you to create tailored Lifetime Trusts, offering expert guidance to help you protect your assets, support your loved ones, and plan confidently for the future.
Russell Kaminski
Partner and Head of Private Client
Lucy Cresswell
Associate
Alison Rocca
Partner
Jason Stanley
Partner
Holly Greensmith
Solicitor
Matt Fleetwood
Group Chief Executive & Founder
Mark Dawson
Group Managing Director
Amanda McAlister
Head of Group Consumer Brands
Because We Are Here To Help You
Protect your assets and secure your family’s future – speak to our experts about Lifetime Trusts today.
"Thank you ever so much, Russell and Lucy for helping me with the death of my father. The whole process of your services has been a godsend. Just wanted to say thank you and take care."
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