Trust Beneficiaries

Juleswal

Hi..... this is my first post and I’m a bit dense when it comes to monetary issues!! I’ve just found out that I’m due to receive £30k from a trust fund set up by my step sister when my step mum died 6 years ago! The cash in this trust fund was made up from the sale of my step mum’s house! It’s come as a total surprise to me.... I wasn’t named in the will so didn’t know about it! She has decided as a trustee to close the trust fund now and gift an amount to all beneficiaries! So the £30k is basically £10k for me and £20k to split between my 2 daughters.... both under 18. So..... when I receive this amount will I have to pay tax on it? I’m currently not working due to COVID & homeschooling my children! My hubby however has his own business and pays higher rate of tax..... I’m a named director in his business. If I keep £10k and put the girls shares into their building society account, will they have to pay tax? Or should I just give them £15k each to avoid paying any taxes? I’m really clueless on how best to approach this!! Thank you for any advice!!!!!

Juleswal

Just re reading my post.... I think what I’m trying to say is what will be more beneficial to me & my girls! I’m not trying to ‘avoid’ paying any taxes due..... I’m not a tax dodger....  but if there’s a way of paying less so my girls will receive more in their accounts and benefit more from their inheritance!

Alexland

Don't worry most of us like to optimise our affairs to pay less tax.

https://www.gov.uk/trusts-taxes/beneficiaries-paying-and-reclaiming-tax-on-trusts

"If you’re a trust beneficiary there are different rules depending on the type of trust. You might have to pay tax through Self Assessment or you might be entitled to a tax refund." and "If you’re not sure what type of trust you have, ask the trustees."

Various different types of trust:

https://www.gov.uk/trusts-taxes/types-of-trust

Once you determine the type of trust, if you need more help, you may get a better response on the main Savings & Investments forum where a couple of the regulars have more experience with trusts.