FAQs - Trusts & executorships

What are trusts used for?

A trust can be used for many different purposes; the most common however is assisting with the management of family wealth in a tax efficient manner.

What rate of tax do trustees pay?

The rate of income tax will depend on the type of trust and the nature of the income.  Discretionary trusts suffer the highest rate of income tax, up to 40%.  Life interest trusts only suffer income tax at the lower and basic rates, up to 20%.  Charitable trustees can often reclaim tax suffered on income received net of tax.

All trusts (excluding charitable trusts who generally do not suffer capital gains tax) are subject to capital gains tax at the rate of 18%. 

How do I go about creating a trust and how much does it cost?

A solicitor needs to be appointed to draft the settlement deed.  The costs vary depending on which legal firm is appointed and the complexity of the trust required.  We can assist advising which solicitor would best suit your needs.