Family trusts
- Thread starter onthehoof
- Start date
IHT relief, plus making things ‘safe’ for next generation
- Location
- South Shropshire
Sometimes creating a legal framework to protect family assets from the worst possible scenario only serves to encourage that very scenario.
Nearly
Member
- Location
- North of York
Just proves you don't trust your kids.
You raised them. Trust them?
A trust is like a marriage. Easy to get into with the best intentions but difficult to get out of cleanly.
You raised them. Trust them?
A trust is like a marriage. Easy to get into with the best intentions but difficult to get out of cleanly.
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- Location
- South Shropshire
You need to let your kids bear the results of their own decisions; good and bad.
- Location
- Somerset
Driven by tax planning, they can be a very good tool, advise it in the right situation.
Driven by asset protection, they often cause toxic feelings and family fallout.
It's the motive not the tool.
Driven by asset protection, they often cause toxic feelings and family fallout.
It's the motive not the tool.
capfits
Member
A lot of the estates are set in trusts.
If I pass prematurely away my assets within the partnership are over to trust controlled by two friends one agricultural,the other not so that there is not a pure swayable focus on farm, rather the beneficiaries.
To my mind a lot of the trusts are short of cash and capital heavy and not particularly good at dealing with fluid situations. As such I have no desire to leave a trust to my beneficiaries.
If I pass prematurely away my assets within the partnership are over to trust controlled by two friends one agricultural,the other not so that there is not a pure swayable focus on farm, rather the beneficiaries.
To my mind a lot of the trusts are short of cash and capital heavy and not particularly good at dealing with fluid situations. As such I have no desire to leave a trust to my beneficiaries.
Just asking the question, thinking about future, had some good answers already.
Advice is free on TFF
- Location
- Lincolnshire
Is the goal tax planning? Or is the goal trying to keep a "family" asset together in one piece? The "threat" of putting it in trust may encourage any non farming offspring to take a smaller cash handout now......
- Location
- Lincolnshire
Avoid if you can is my view. And be very careful if you appoint outsiders as trustees. They’ll usually end up milking it for all its worth.
I have seen so many old farmers who don’t trust their kids, leave their farms in trust with weasel land agents as the trustees. Inevitably those trustees run the farm for their own benefit drawing huge expenses and/or letting it to their favourite FBT man. The kids get the leftovers if there are any. Such a farm, in the hands of third party trustees, is more or less worthless to those who should have inherited it.
I have seen so many old farmers who don’t trust their kids, leave their farms in trust with weasel land agents as the trustees. Inevitably those trustees run the farm for their own benefit drawing huge expenses and/or letting it to their favourite FBT man. The kids get the leftovers if there are any. Such a farm, in the hands of third party trustees, is more or less worthless to those who should have inherited it.
- Location
- Lincolnshire
I feel a bit similar about wills. I’ve made one, so I’m not leaving a mess to be sorted out, but when I’m dead it won’t bother me if they sell the lot and spend it on crack cocaine and loose women.
Netherfield
Member
- Location
- West Yorkshire
I don't trust anybody in my family.
Trusts are often set up by bitter old folks who don't much like, or trust their heirs to make their own decisions. It is sometimes seen as a means to rule from beyond the grave.
Bear in mind trusts will pay enhanced CGT rates on property disposals, Income Tax on earnings of 45%, annual accounting fees, and you have to settle IHT every 10 years on the enhanced value of the trust.
Bear in mind trusts will pay enhanced CGT rates on property disposals, Income Tax on earnings of 45%, annual accounting fees, and you have to settle IHT every 10 years on the enhanced value of the trust.
I think there are different types of trusts for different objectives, dad set up a lifetime?? trust to protect him from IHT, after he died the trust was dissolved
- Location
- South Shropshire
Too many people want to influence the way the assets are managed long after they are gone.
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- Location
- South Wales UK
Often you try and do something to keep all happy and turns out to be the complete opposite possibly.
Also what's good today can be terrible tommorrow.
HMRC rules change along with people's views and ideas.
Also what's good today can be terrible tommorrow.
HMRC rules change along with people's views and ideas.
Don't they just....
Ludicrous really, as long as your Dependents are treated fairly, that's about it. Oh yes, avoid giving % of an Estate to Charities, f**king ambulance chasers are scum IME
Re-assess any Will or Trusts at least every 5 years and after any changes in circumstances, say marriage or deaths...
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A "trust" set up by a relative who's marriage ended in divorce, and the first we knew of the trust was a solicitor's letter, cost us ALOT of money, make sure you get very good advice , I won't ever go near one again ! See your accountant and solicitor and make plans with there help, a little bit extra spent now can be worthwhile in the long run !