Embed Size (px)
Citation preview
Chris CotillardDirector, Alex Picot Trust
4 Things To Consider When SettingUp A Family Trust
There are four key considerations when setting up a familytrust to make sure your hard earned assets go exactly
where you want them to.
Who do you want tobenefit?
Only those named as beneficiaries have
any rights to the trust assets.
Beneficiaries can be added or removed at
a later date.
It is important to consider every person
you want to benefit from your trust
arrangements.
The trustee is the company or individual to who you hand overpossession of your assets to.
The beneficiary is the person(s) to who you nominate to receivethe benefit of those assets.
The settlor is the individual whose assets are placed into the trust.
The key persons in a trust are:
Objectives
Some of the key objectives for
setting up a trust:
asset protection
succession planning
protecting vulnerable / young individuals
tax benefits
keeping assets together in a structure
charitable purposes
This list is non-exhaustive and objectives will be based on personal circumstances
What type of trust?
A ‘bare’ or nominee trust is where the trustee is only a nominee, thetrustees must simply follow the lawful instructions of the beneficiary in
relation to the assets held in the trust.
A discretionary trust is guided by the trust instrument and the settlor’sletter of wishes. Assets are administered and distributed in accordance withthe settlors’ wishes. The trustees have discretion over the appointment of
income or capital to the beneficiaries, there is no fixed entitlement.
A life interest trust is where an interest is given to a beneficiary for a fixed orindefinite period or more usually for the rest of the beneficiary's life. For
example the right to occupy a property.
This list is non-exhaustive and and other types are available depending on personalcircumstances.
Tax consequences
A trust may give the opportunity to defer tax liabilities orremove them altogether.
Inheritance Tax may be applicable on the transfer of assets orfunds into the trust by UK residents, upon the death of the
settlor or at ten-yearly anniversaries.
For Jersey residents, Inheritance Tax is not an issue.
Each type of trust is taxed differently, and
should be discussed with your potential trustee
on the drawing up of your trust deed.
Contact Us+44 (0) 1534753753
Alex Picot Trust
Disclaimer
The document contains general information about our services and does not constitute professional advice. We cannot accept liability for loss or damage suffered as a result of reliance on the information contained
herein.
No member of the Alex Picot Trust Company Ltd is authorised to provide investment advice. You should seekindependent financial and legal advice before processing any financial business in Jersey.
Alex Picot Trust Company Ltd accepts no responsibility or liability for any other document to which you maygain access from this document, or from which you may have gained access to this document and do not
accept any responsibility or liability in connection with any links or websites.
The content of this document, its design and layout is protected and is the property of the Alex Picot TrustCompany Ltd. No permission is granted to copy this material or reproduce it in any form without written
permission.
Alex Picot Trust Company Ltd is regulated by the Jersey Financial Services Commission toconduct trust company business under the Financial Services (Jersey) Law 1998.
