½Û×ÓÊÓƵ

Will trusts

Produced by Tolley in association with
Trusts and Inheritance Tax
Guidance

Will trusts

Produced by Tolley in association with
Trusts and Inheritance Tax
Guidance
imgtext

Introduction

Trusts are not confined to lifetime arrangements. A trust can arise on death under the terms of a Will. It is much more common, in fact, for people to have a trust in their Will than make a trust in their lifetime.

A client making his Will (known as the ‘testator’ in the case of a man and ‘testatrix’ in the case of a woman) needs to think firstly about who his beneficiaries are to be. Next, the testator must choose between making outright gifts and leaving his property in trust.

Trusts are much more flexible than outright gifts. This flexibility can be especially useful in a Will given that it does not usually take effect straight away and might not come into effect for many years. The testator cannot anticipate precisely what his family and financial circumstances will be at the time of his death. Similarly, the future financial and personal position of the beneficiaries is uncertain at the time the Will is made.

A trust (in its most flexible

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Emma Haley
Emma Haley

Associate at Boodle Hatfield LLP 


Emma Haley is a senior associate solicitor at leading private client firm, Boodle Hatfield LLP, renowned for providing first-class and practical legal advice to wealthy clients around the world.Emma has many years experience in dealing with all aspects of wills, probate, capital taxation and succession planning as well as UK and offshore trusts. Emma currently heads up a technical know-how team and is a regular writer and lecturer on estate planning and inheritance tax and also a member of the Society of Trust and Estate Practitioners.

Powered by
  • 14 Sep 2022 10:01

Popular Articles

Settlor-interested trusts

Settlor-interested trustsWhat is a settlor-interested trust?A settlor-interested trust is one where the person who created the trust, the settlor, has kept for himself some or all of the benefits attaching to the property which he has given away. A straightforward example is where a settlor

14 Jul 2020 13:38 | Produced by Tolley Read more Read more

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more Read more

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more Read more