A Trust is a tax efficient way of holding and managing money, property and other assets for the benefit of a person or group of people, these are your beneficiaries; your married or civil partner, children or relations to whom you wish to leave your belongings or benefits after your death.
Your trust will also appreciate interest over the years.
In the UK Property Trust can be used to hold property for beneficiaries who are not old enough to handle their own affairs or to prevent immediate disposal of an asset by beneficiaries in the case where the remaining partner is given the right to live in the property until they see fit.
If you inherit property in a trust then you are the beneficiary. The assigned Trustee is the legal owner of the property held in trust and is legally bound to deal with it as set out by the deceased in their will.
The trustee will deal with the property trust’s tax affairs, but you may have to pay Income Tax on any income you receive from the trust.
However if the trust is a bare trust, you are the legal owner as well as being the beneficiary.
Trusts must be correctly setup to avoid tax or inheritance pit falls.
Our trust experts are here to give you the best advice on the different trust funds available and the best way to handle gifting and inheritance tax.