Almost anyone can be a trustee as long as they are over the age of 18, of sound mind and are not declared bankrupt. However the role is strictly governed by both statute and the terms of the trust itself. It is very easy for an unadvised trustee to inadvertently breach one of the strict duties imposed on them and find themselves personally liable for any loss to the trust fund. This can be something as simple as not properly investing the trust fund or to failing to submit annual income tax returns for the trust.
Therefore when creating a new trust, whether during your lifetime or by Will, we recommend that you seek legal advice regarding the terms of your trust and whether the complexities involve highlight a need for professional trustees.
This is a very complex area. There are several types of trust for tax purposes and the terms of the trust will dictate how the trust is then treated for tax purposes. There are different rules for IHT, CGT and income tax and it is important to identify the type of trust at an early stage. The nature of the trust for tax purposes may change over time and the trustees need to be able to identify that this is the case.
We have a range of services for trustees ranging from dealing with one-off queries to carrying out a general review to acting for the trustees in administering the trust. Please contact us to discuss your trust in more detail so we can identify how we might help you.
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