INFORMATION
FOR TRUSTEES OF WILL TRUSTS, LIFETIME TRUSTS AND LIFE INSURANCE
TRUSTS
If you are a trustee of a Discretionary Trust you are
responsible for carrying out the wishes of the Settlor, for keeping
records and
reporting any tax due. For families where a Discretionary trust
has been set up to avoid inheritance tax on the family savings, home
and business assets or to care for a disabled child, there will be
at least two trustees.
The Responsibility of Trustees
Trustees are responsible for:
Ensuring the wishes of the Settlor
(person making the trust) are carried out and should have the
Trust Deed or Will with Trust Clause
and any Letters to the Trustees for guidance.
Informing the Inland
Revenue that a trust has been created.
Ensure any investments
are made with due care and diligence.
Passing on assets or capital
to the beneficiaries.
Distributing income to the beneficiaries.
Making and documenting
loans to beneficiaries. (Typically this will be a share in property
which has to be passed to a surviving
spouse in return for an IOU to protect that property from Creditors or IHT.)
Keeping
financial records and minuting trustee meetings.
Completing and
sending back any tax return issued to you.
Paying any tax due
by the trust.
Supplying vouchers to the beneficiaries to show
how much income they have received from the trust in the tax
year and how much tax
the trustees have deducted. Beneficiaries, may be able to claim this
tax back.
For a simple Discretionary Will Trust where everything is passed
to a surviving partner in return for an IOU, you may wish to do
the paperwork yourself. However, we can provide this service for
you if you have a busy life or prefer not to.
Our TRUSTEE ADVISORY SERVICE is ideal for the busy person who
has no experience of this area and who has been appointed as a
trustee to a trust created by a friend or relative. We provide
ongoing advice to trustees and keep you informed of all your responsibilities,
complete the annual tax return for the trust, complete the survivors’ tax
return and provide all the forms and paperwork.
Costs start from around £180.00
pa. However do call us on 0800 7816743 or email
us for a free estimate.