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Comings and goings
Key points
- Trusts are relatively simple when boiled down to the fundamentals.
- Most of the time if a settlor transfers assets to a trust inheritance tax will have to be paid.
- The entry rate is usually 25% because the donor typically has to pay the tax. If the trustees pay the tax the entry rate is 20%.
- The capital gains tax side is more complex.
Whisper it quietly but trusts are relatively simple things when they are boiled down to the fundamentals and we are not distracted or confused by the ‘legal speak’ in which they are wrapped up.
People (settlors) put things (assets) into a ‘large cardboard box’ to be kept safe and accessed at a later date (a trust). The trustees look after the box for a while and in the meantime the assets in the box generate income and grow...
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