Putting Investments Into Trust?

love2learn

If I had a some of money over the IHT threshold invested in a managed equity fund, is it possible to put that money into a family trust for my son and still have control over the investment and take a yearly income?

I know by putting it into trust it's effectively out of my estate, however I would still require an income during retirement and would still like control over where the money is invested.

Is this possible?

zygurat789

love2learn wrote: »

If I had a some of money over the IHT threshold invested in a managed equity fund, is it possible to put that money into a family trust for my son and still have control over the investment and take a yearly income?

I know by putting it into trust it's effectively out of my estate, however I would still require an income during retirement and would still like control over where the money is invested.

Is this possible?

Or How to have your cake and eat it?

John_Pierpoint

So far you have heard something.

Now buy a copy of the Which? book called Giving and Inheriting.

http://www.whsmith.co.uk/products/giving-and-inheriting-new-edition/product/9781844901180

You need the one with the family tree cover, I think it is still reasonably up to date but if you find a reference to "a pilot trust" check back here.



Then set aside a weekend, with a cold wet towel to wrap round you head and "Read, mark, learn and inwardly digest" the book.

http://www.trinitycranford.org/?page_id=3876

Then come back and ask the question again.having given yourself a full "fact find", bearing in mind that the rules could be changed again at any time.

kidmugsy

love2learn wrote: »

If I had a some of money over the IHT threshold invested in a managed equity fund, is it possible to put that money into a family trust for my son and still have control over the investment and take a yearly income?

My understanding is that in general if you insist on benefiting from the investments, then putting them in trust doesn't take them out of your estate: you have to use specific exceptions if you want to avoid IHT.


There are "Business Property Relief" investments that, if you hold them until death, become IHT-free after two years. They can include (many) AIM shares - which you can even hold in an ISA. You wouldn't use a trust for these schemes (as far as I know). Providers include Downing, Octopus and many others. I have no experience of them. Farms and woodland also offer opportunities.

xylophone

http://www.hmrc.gov.uk/trusts/types/settlor-interested.htm
http://www.hmrc.gov.uk/trusts/types/minors.htm
http://www.hmrc.gov.uk/trusts/types/discretionary-accum.htm

Tax treatment of trusts is complex - you would need professional advice.
http://www.step.org/

love2learn

Thanks for the reply guys, sorry for the late acknowledgment, been a bit tired recently and the memories not great due to my new born sons sleeping pattern haha

I will get that Which book and study it, thanks ;-)