While they are not as useful as they once were, trusts, such as bare trusts and discretionary trusts still have a part to play in estate planning and in protection from mismanagement.
Typical Problems that we come across
Persons for whom a trust has been established, the beneficiaries, often need advice on the tax implications for them of any benefit that they receive from the trustees. This is understandable given that the receipt of a benefit could give rise variously to inheritance/gift tax or income tax liabilities.
How We Can Help
In cases involving trusts, in order to establish the tax consequences of a benefit it is necessary to examine carefully not only the document, or trust deed, under which the trust was established but also the residence, ordinary residence and domicile status of the person, the settlor, who settled the assets on trust and the beneficiaries who stand to benefit. Once this is done we advise on the tax consequence of the benefit.