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Trusts and Inheritance

A trust is a three-party fiduciary relationship in which the first party, the trustor or settlor, transfers a property upon the second party for the benefit of the third party, the beneficiary. 

How can we help with trust accounting?

Ensure your trust meets the needs of your family while correctly following regulation with Hysons, Chartered Accountants. Whether you're looking to start-up a trust or manage an existing trust, our bespoke services can meet your requirements. Some of these include:

  • Advising on trust structure
  • Acting in the role of trustee 
  • Advising in relation to capital gains tax for the disposal of trust assets 
  • Reviewing ongoing effectiveness of a trust, with regular reporting to review performance
  • Assisting the family of the deceased with a future strategy

The needs and requirements of trustees can differ from those of private individuals. The legal requirements of the Trustee Act 2000 places a duty upon trustees to seek advice from a suitably qualified professional in respect of investments held. Pick up the phone and talk to us, we are here to help.

Trusts are extremely useful for tax planning purposes. They are particularly useful for holding shares in private companies as part of a family financial or tax plan - especially if you want to reduce inheritance tax liability in your estate.

They can also be useful for:

  • Providing funds for your children's education, maintenance, etc
  • Restricting access to property by future beneficiaries
  • Providing for people who are mentally or otherwise incapacitated
  • Gifting to charity

There are four main types of trust:

  • Life interest trusts
  • Discretionary trusts
  • Accumulation and maintenance trusts
  • Bare trusts

Each type of trust receives different tax treatment and can be adapted to many different purposes.

To take full advantage of trusts in your tax and estate planning you need to receive expert help and advice.

We can help you determine which types of trust are suited to your purposes, prepare the necessary documentation, and advise on appropriate trustees.

We can also help you with inheritance tax queries

If all your assets - including your home - are worth £325,000 or over, you could be caught out by inheritance tax. It is becoming more and more likely that you will need to consider inheritance tax in your financial plans. Although it used to affect only the very wealthy, a general rise in house prices over the past decade means that more people have fallen into the inheritance tax bracket.

Inheritance tax is payable if the value of your estate exceeds £325,000. Tax on any part of your estate above this threshold may be charged at 40%. Your estate includes everything you own, less any outstanding debts, when you die. Even if you give away some of your assets during your lifetime, such as property or money, they may still be included in your estate if they are given away within 7 years of your death.

There are ways that you can reduce the potential inheritance tax bill, or even eliminate it altogether, so do make an appointment with our team and talk to us for expert inheritance tax advice.

Why choose Hysons?

We believe a company can only be as strong as its financial management. That's why Hysons, Chartered Accountants in Hampshire are dedicated to forming a relationship with our clients that enable us not only to understand their needs but explore how we can exceed expectations as well.

To find out how you could benefit from our trust accounting services, contact Hysons and book a free accounting consultation.

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Hysons help take care of your personal finance needs by guiding you on how to manage your taxes most effectively, whether that's inheritance tax, capital gains or trusts. We also complete your tax returns and submit them on time to avoid penalisation.

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