Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • sultanpepper
    • By sultanpepper 14th Oct 16, 10:00 AM
    • 2Posts
    • 0Thanks
    sultanpepper
    Trust matter
    • #1
    • 14th Oct 16, 10:00 AM
    Trust matter 14th Oct 16 at 10:00 AM
    I wonder if someone could help me here.

    I set up a trust about 12 years ago in favour of my grandchildren; it is now valued at about £115,000. Rather than cause any problems after my demise I would like to distribute the assets to them now. The assets in the trust are not income producing but I am assuming there will be some capital gains tax when everything is done which I will pay.

    Would there be anything else or is that it? I did give the grandchildren £40,000 each (there are three of them) a few months back and wondered if that could be relevant.

    Many thanks if anyone can help.
Page 1
    • xylophone
    • By xylophone 14th Oct 16, 10:31 AM
    • 19,179 Posts
    • 10,893 Thanks
    xylophone
    • #2
    • 14th Oct 16, 10:31 AM
    • #2
    • 14th Oct 16, 10:31 AM
    The gifts to the three grandchildren are PETS - you should keep a record with your will for the guidance of your executor.

    With regard to the Trust, the Trustees are bound by the terms of the Trust Deed - I would suggest that you consult the solicitor who drew up the Deed - he is unlikely to advise on any taxation aspect but will probably be able to point you in the direction of a "man who can".
    • Runninglaps
    • By Runninglaps 14th Oct 16, 10:56 AM
    • 4 Posts
    • 0 Thanks
    Runninglaps
    • #3
    • 14th Oct 16, 10:56 AM
    • #3
    • 14th Oct 16, 10:56 AM
    Take professional advice.

    Trusts are complicated legally.

    Trusts are complicated from a tax point of view.

    This is £115,000 we are taking about. Money spent on professional advice may seem like a waste but you do not want an unexpected tax bill, legal challenge or the costs of fighting those.
    • sultanpepper
    • By sultanpepper 14th Oct 16, 11:33 AM
    • 2 Posts
    • 0 Thanks
    sultanpepper
    • #4
    • 14th Oct 16, 11:33 AM
    • #4
    • 14th Oct 16, 11:33 AM
    Many thanks for the answers....of course, I will be taking advice on this from my solicitor. And records regarding the gifts are already with him so that is sorted.

    I just wondered whether this might cause any problem with estate tax....presumably not, but would anyone think it would? I think there will be capital gains tax to pay but I will do that.
    • HappyHarry
    • By HappyHarry 14th Oct 16, 11:44 AM
    • 215 Posts
    • 206 Thanks
    HappyHarry
    • #5
    • 14th Oct 16, 11:44 AM
    • #5
    • 14th Oct 16, 11:44 AM
    Many thanks for the answers....of course, I will be taking advice on this from my solicitor. And records regarding the gifts are already with him so that is sorted.

    I just wondered whether this might cause any problem with estate tax....presumably not, but would anyone think it would? I think there will be capital gains tax to pay but I will do that.
    Originally posted by sultanpepper
    It is unlikely that this trust will cause any problem with Inheritance Tax, however, there may be Income Tax or Capital Gains Tax to pay on surrender of the investments. Which tax, if any, will depend on the type of trust, and the type of investments within the trust.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • Bluebirdman of Alcathays
    • By Bluebirdman of Alcathays 14th Oct 16, 11:51 AM
    • 2,696 Posts
    • 2,964 Thanks
    Bluebirdman of Alcathays
    • #6
    • 14th Oct 16, 11:51 AM
    • #6
    • 14th Oct 16, 11:51 AM
    There are solicitors available who are experts in these matters, it may not necessarily be the same one that set the original trust up. I know one who is STEP and CTA qualified, but he's far from cheap. Although as Runninglaps said, it will be worth it in the long run.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,724Posts Today

8,460Users online

Martin's Twitter