Financial Planning with Trusts

This substantial work looks at a wide range of topical tax and financial planning strategies using trusts. 

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About this work

Essential for tax practitioners and financial advisers alike, the book demonstrates the effective use of different trusts to meet financial and tax planning objectives. The book includes CGT, income tax and IHT planning and also examines the special trust arrangements used in the financial services sector.

Examples of the topics covered include (among many others) lifetime IHT planning; family investment companies as alternatives to trusts; offshore trusts; trusts and deeds of variation; trustee investment strategies; death benefits under registered pension schemes; by-pass trusts; asset protection trusts; personal injury trusts; money laundering and the Trust Registration Service.

Written by two highly qualified and experienced authors, this book helps readers to grasp the full implications, advantages and potential disadvantages of using a particular trust. The text is supported throughout by statutory references and case law precedents.

Worth its weight in gold … . The contents table is awesome. – AccountingWeb review of earlier edition

Useful and practical, and it succeeds in explaining complex subjects in a clear and concise way.” – Taxation review of earlier edition

Contents (in brief)

• First principles
• Trust fundamentals
• Taxation of trusts – general principles
• Tax on trust income
• Tax on trust capital gains
• Inheritance tax and trusts
• The relevant property regime
• IHT planning – anti-avoidance
• IHT – lifetime planning with cash and investments [expanded by way of example]
  • Introduction
  • Important issues in deciding the choice of trust
  • Bare trusts
  • Discretionary trusts
  • Discretionary gift trusts – income tax implications
  • Discretionary gift trusts – CGT implications
  • Discretionary gift trusts – IHT implications [expanded by way of example]
    • Creation of the trust
    • Additions to the trust by the settlor
    • Death of a beneficiary
    • Death of the settlor
    • IHT whilst the trust is in existence
  • Summary of the uses and tax implications of a discretionary trust
  • The discretionary trust in action
  • Power of appointing interest in possession trusts
  • Choosing the right trust when making a lifetime gift
• Lump sum IHT plans
• Trusts and the GAAR
• Family investment companies as an alternative to trusts
• Offshore trusts
• Excluded property trusts
• Using trusts in wills
• Trusts and deeds of variation
• Trusts to avoid probate
• Lasting powers of attorney
• Trusts of life assurance protection plans
• Relevant life policies
• Trustee investment strategies
• Single premium bonds held in trust
• Death benefits under registered pension schemes
• By-pass trusts
• Qualifying non-UK pension schemes
• Trusts for business protection and succession
• Shares in the family private trading company
• Gifts of property
• Chattels
• Asset protection trusts
• Trusts to reduce the cost of care
• Personal injury trusts
• Trusts for the disabled and the vulnerable
• Dealing with HMRC – trust income, capital gains and IHT
• Beneficial ownership – registration, disclosure, the CRS and FATCA
• Money laundering and the trust registration service
• Facilitating adviser charging through investments in trust
• Glossary of trust terms

Authors

John Woolley LLB, barrister, FCII, CTA (Fellow), TEP is a director of Wooltech Ltd, having previously been a director of Technical Connection Ltd for 25 years.

John regularly contributes articles on tax planning to various journals as well as making guest attendances as a speaker at various financial services and tax conferences.

Marcia Banner is a Senior Tax and Trust Consultant at Technical Connection Ltd. She has worked in both legal practice and the financial services industry and is a fully qualified graduate member of the Chartered Institute of Legal Executives.

Marcia has over 30 years of experience of advising on trusts and tax planning matters and, prior to joining Technical Connection Ltd in 2012, held the position of Senior Trust Manager for Scottish Widows, where she was responsible for the trust proposition and acted as their expert spokesperson on inheritance tax and trusts.