Thank you for contacting us.
We will get back to you as soon as possible.

Contact us

You acknowledge that by submitting your details via this page, you consent to us processing your personal data in accordance with our privacy policy.

Why do I want a Trust?

Why do I want a Trust?

In the current climate you may wonder why it is still appropriate to consider preparing a Trust.  In recent times the compliance associated with trusts has become even more burdensome.

Previously Trustees have had to contend with the introduction of FATCA (Financial Account Tax Compliance Act) which was introduced following an Inter Governmental Agreement between the US and the UK.

In 2017 HMRC introduced the Trust Registration Service, requiring Trustees, or their agents, to provide much more information to HMRC than had previously been the case.  This will be an ongoing requirement and supposedly is designed to help HMRC move towards the digital age.

The other area that has added to the compliance burden is the requirement for trusts to obtain LEI’s (Legal Entity Identifiers) in order that they can trade investments and securities.

All of these complexities make one question whether there is still a place for the creation of trusts moving forward.  Thankfully, I am pleased to say, there is still a real demand for trusts to be prepared.  Creating a trust is not just about tax planning, as governments may have you believe, but it is about providing protection to the family wealth that has been created.  Trusts have many purposes, which do include tax planning, but not necessarily in a way that is aggressive or contentious.  Often the reason is because of the concerns that younger or vulnerable beneficiaries are unable to look after such wealth themselves and the trust structure provides the mechanism to do that.

Despite the compliance headache that now goes with creating and administering trusts I believe they still have a very valuable role to play today, and long may they continue so to do.

For advice on trusts or any other area of Private Client law, please contact Richard Horwood.


Please note the contents of this blog are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances. 

Keep It In The Family (Friday 18 October 2019)
18 Oct 2019 - posted in Events

Are you thinking about updating your will or worried about inheritance tax?

Read more
Longmores celebrate their 200th anniversary
24 Jun 2019 - posted in News
Author: Charlotte Hastings

Longmores Solicitors are celebrating the firm’s 200th anniversary since their founding in 1819. Two hundred of the firm’s clients and professional colleagues joined Longmores...

Read more
Financing Your Lease Extension
20 Jun 2019 - posted in Blog
Author: Polja Atkins

Many tenants commence the process of lease extension, whether pursuant to the Leasehold Reform, Housing and Urban Development Act 1993 or by voluntary agreement with...

Read more