Strategies for asset management might well include the formation of a UK trust.

We can assist you in the formation of such trusts and act as trustees. Acting through the Veale Wasbrough Vizards Executor & Trustee Company we can manage the trusts for you, often in partnership with a family member.

We can provide advice on the legal interpretation of trust documents and on the duties and rights of trustees and beneficiaries.

Typically a trust will be formed either for tax reasons or (increasingly) as an alternative to an outright transfer to individuals, in order to protect capital. We offer full accounting and tax administration services and have a substantial number of trusts under management.

The creation of settlements during your life time can take the form of either an interest in possession trust or a discretionary Trust. Both are excellent vehicles for preserving assets or cash for future generations, safe guarding the future of your heirs by protecting against spend thrift children or providing for their future needs such as education or even a deposit for their first home.

By way of a further example, advising on Heritage Property exemption and the creation of a life time discretionary trust Maintenance Fund which is a tax efficient vehicle for providing funds for the upkeep of heritage property in private ownership.

Both types of trust have different tax treatments and the choice of which one will be entirely dependant on what you are trying to achieve.

The amount of work involved in the administration of a trust depends to a large extent on the type of assets within the trust. In the case of a trust consisting of cash, stocks and shares or managed investments the areas of work will typically be as follows:

• Maintenance of the cash accounts including direct debits and standing orders and the mandating of investment income to the account; arranging for a suitable amount to be kept on interest bearing deposit and advising on suitability of taxed or untaxed interest; safe keeping of the cheque books and passbooks. Cash may be held in our client account when appropriate.
• The preparation of annual accounts to show capital movements, income received and distributions made. Accounts are typically drawn to the 5 April each year and include full statements of the investments at that date.
• Completing the annual return of income and capital gains; completing any necessary inheritance tax returns; maintaining the history of trust assets for capital gains tax purposes, receiving and checking tax assessments, appealing them as necessary and arranging payment when correct. The tax work will include, where appropriate, reclaiming tax on behalf of the beneficiaries. Accrued income scheme tax is also covered.
• Advice to the trustees and also to beneficiaries on the terms of the trust and the trustees' powers under it. For example, this may include the drafting of Deeds of Appointment.
• The necessary arrangements will be made for investment advice and we will liaise with the trustees' chosen investment adviser. This will generally include the production of six monthly valuations and reviews. We will arrange directly with the investment adviser, sales and purchases authorised by the trustees. Investment certificates may be stored at Veale Wasbrough Vizards for safe keeping.
• Depending on the trust type, trustees' meetings may be arranged annually or more frequently.

The services of the Veale Wasbrough Vizards Executor and Trustee Company as trustee will normally be made available if requested.

Our charges for administration are calculated according to time spent doing the work involved and are not dependent on the value of the trust. Inevitably however, a larger trust is likely to involve more work. We prefer to quote individually depending on the make-up of the trust assets.