Frequently Asked Questions Page 2
Who should be a Trustee?
Usually Trustees are selected from close family and friends. They are usually those the settlor trusts most and whose judgement they can rely. Alternatively, people select professional Trustees.
Continue reading Who should be a Trustee?
What Do The Trustees Do At The Commencement Of The Trust?
Trustees should make sure that they have the trust documents safe and familiarise themselves with the terms included.
Continue reading What Do The Trustees Do At The Commencement Of The Trust?
What Are The Main Duties Of A Trustee?
The duties and key responsibility of the trustee: Take legal ownership of the trust fund.
Continue reading What Are The Main Duties Of A Trustee?
What Are The Tax Responsibility Of A Trustee?
The trustees are responsible for reporting and paying tax on behalf of the trust.
Continue reading What Are The Tax Responsibility Of A Trustee?
Trustees Registering for Tax?
Trustees need to register a trust with HMRC to pay income tax and capital gains tax. Do this by 5th October of the tax year after the trust is set up ( or when it starts to take Income or chargeable gains, if this is later ).
Continue reading Trustees Registering for Tax?
Sending Annual Tax Returns
Trustees must report the trust’s income and gains in a trust each year through the on line portal or by post. They will need to collect and keep records (bank statements) to complete the trust return
Continue reading Sending Annual Tax Returns
Telling Beneficiaries About Tax And Income
Trustees need to supply the Beneficiaries with a breakdown of the trust and tax paid if they demand it.
Continue reading Telling Beneficiaries About Tax And Income
Do Trusts have Inheritance Tax?
A trust may have an entry charge, exit charge and inheritance tax charge.
Continue reading Do Trusts have Inheritance Tax?
What is a Deed of Trust/Declaration of Trust?
A Trust is a legal arrangement where one or more 'Trustees' are made legally responsible for holding assets.
Continue reading What is a Deed of Trust/Declaration of Trust?
What is a Will?
A will is a legal document that determines what happens to the distribution of your property, assets and any minor children you may have in the event you should die.
Continue reading What is a Will?
Do I need a Will?
To ensure your last wishes are carried out, you should get a will that is written and overseen by a professional body, such as Affinity Legacy.
Continue reading Do I need a Will?
What is a Deed Of Variation?
For additional tax planning and mitigation or to re-route legacies, there are post death variations available.
Continue reading What is a Deed Of Variation?
Can I remove assets from an estate if I do not have the Grant of Probate?
No. It is illegal to remove any funds or assets from an estate until the Grant of Probate has been received. Funds should only be removed when the executor of the Will has the Grant of Probate and then authorised the funds removal.
Continue reading Can I remove assets from an estate if I do not have the Grant of Probate?
What is the waiting time for receiving the Grant of Probate?
The normal waiting time is approx 12 weeks. Due to the pandemic, the current waiting time from the Probate Office is now 3 to 6 months
Continue reading What is the waiting time for receiving the Grant of Probate?
Disclaimer: The information provided in these FAQ pages is correct to the best of our knowledge, but may contain errors. We cannot be held liable for any misunderstanding or errors that may arise from the use of this information. We recommend that you seek professional advice before making any decisions based on the information provided here.