TRUSTS & INHERITANCE TAX

Trusts remain a popular vehicle for tax and succession planning. Set up appropriately, they can continue to form an effective part of estate planning. However, this is a highly complex area of tax law and expert advice is of paramount importance.

A raft of changes to the taxation of trusts in recent years means the landscape is now as complex as it has ever been. Nonetheless, trusts can still be an efficient tool for private clients, in the right circumstances. They should always be considered as part of an individual’s wider affairs, but the expert team at Lancaster Knox has extensive experience in this area of taxation.

More widely, it is important to give due consideration to Inheritance Tax (“IHT”) to ensure your affairs are as streamlined as possible. Not only does poor estate planning risk wiping out 40% of your family’s inheritance, the administrative and emotional burden of dealing with assets not appropriately structured can be exhausting.

We realise that IHT and planning your estate can be a sensitive topic.  Lancaster Knox approach these discussions in a delicate, discreet and professional manner, taking the time to understand our clients’ circumstances in detail. Our wide range of services includes advising on the following:

Estate reviews and a ‘Wealth Health Check’ to understand your current position, your aims and your key areas of concern;

Business Relief in relation to business interests, shares and certain investments, which can provide relief of up to 100% from IHT;

Trusts as a vehicle for passing wealth to the next generation of your family in a tax-efficient way;

Structuring assets both in a tax-efficient manner, and in such a way as to minimise the administrative burden for beneficiaries of estates;

Reviewing existing trust structures to establish if they remain fit for purpose, and advising on restructuring where appropriate;

Compliance services for trustees, executors and personal representatives.


NON-UK RESIDENT TRUSTS

Trustees of non-UK trusts have very specific considerations that require the input of advisors well-versed in the inherent complexities.

The compliance and administrative burden for non-UK trustees has never been greater. Remaining up to date with the extensive changes introduced in April 2017 and later is vital. The team at Lancaster Knox includes advisors who are experts in this field and can advise on the full remit of trust taxation, including:

IHT implications of holding UK residential property, with changes introduced from 6 April 2017 bringing property interests held indirectly (i.e. through a company or similar) within the scope of the ‘relevant property’ regime;

Reviewing trust structures in light of the recent Requirement to Correct legislation, and assisting with bringing trustees’ tax affairs up to date if required;

Changes to the taxation of trusts settled by non-UK domiciled individuals, and the impact for trustees, settlors and beneficiaries;

Establishing and managing new structures, including working with Knox House Trust where appropriate to provide a full-capability fiduciary service.

HOW CAN LANCASTER KNOX HELP?

Lancaster Knox provides specialist, tailored advice to individuals and families regarding estate planning and inheritance tax. We approach discussions in a delicate, discreet and professional manner with the aim of obtaining a clear picture of the client’s circumstances.  

OTHER PRIVATE CLIENT SERVICES