In a consolidated approach to your personal tax planning, trusts could play a big part in ensuring that your money works harder for you and your family.

setting up a trust fund

As an entrepreneur and business owner, you’ll want to ensure that whatever happens in the future, the rewards from your hard work can be protected as tax efficiently as possible. Berley understand this; it’s part of the ‘sharp eyesight‘ message we talk about. You may not be thinking about this right now given the other pressures on you to succeed, but we are, as trust planning has to be started early. Consider it part of our resolve to see that your long term interests are taken care of.

The mention of trusts and trust funds usually evokes thoughts of your family’s financial future when you or your partner have passed on, either naturally or for accidental reasons. Ensuring your inheritance reaches your beneficiaries in the most tax effective manner is a matter of trust as there are many options and issues to consider, least of all HMRC. You need to have real trust in the experts you appoint to manage the matter for you.

There are a number of different types of trusts which could feature in your tax planning and these can help you to plan a more effective tax situation, particularly if inheritance tax is likely to be an issue.

A trust can used for many purposes such as:

  • Holding shares in private companies for a family financial plan
  • Keeping funds separate for minors or for people who are incapacitated
  • Holding money for your children’s schooling or maintenance fees
  • Restricting access to property or money for future beneficiaries
  • Giving money to charity

Whatever the reason for setting up a trust fund, there are four main types of trusts that should be considered. Each of these trust types holds different tax benefits, which is why it is important to fully explore all of the options open to you to find out which one is most suitable for you and your requirements. The only way to achieve this is to receive professional and specialist advice about your circumstances and needs so the right trusts can be set up.

The four main types of trusts are:

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

Whilst these are the most common types of trust, there are other options available so we will take care to tailor your trust solution to your circumstances when setting up a trust fund, whether it is for income tax, capital gains tax or inheritance tax mitigation.

Thinking about setting up a trust fund? Let Berley help

Our experienced tax team at Berley Chartered Accountants will look at all aspects of your personal financial situation and consider areas which may benefit from implementing a trust. This could be particularly effective for inheritance tax purposes, however, in order to be completely successful, any trusts set up for these purposes will need to be planned well in advance. This means that you need to start looking at all of your options as early as possible.

We understand how critical the management of your trusts can be, so our approach will be in depth and will take into account all aspects of your personal and business life. Talk to us now to find out more.

Contact the trust experts today

If you would like to understand how trusts can work for you to improve your tax situation or just how we can help you in setting up a trust fund then please get in touch with us now.