Setting up a UK trust

If you have decided that setting up a trust structure is the best vehicle to use for your estate planning, then what is the next step and what questions should you be asking yourself?


What assets would I like to gift?

  • What type of assets would I like to pass down?
    • Property
    • Cash
    • Share portfolio
    • Shares in a family business
  • What is the value of the asset(s)?

Some consideration should be given here as due to legislation introduced in 2006, there was a limit on how much could be settled into Trust without incurring a 20% Chargeable Lifetime Transfer.

The limit is the UK Nil Rate Band, which is currently £325,000 per person.

  • Do I need the income from these asset(s)?

If the assets that you are thinking of gifting into trust are required to provide you with or supplement your income, then you must contemplate whether that income in necessary to your daily life as if you intend to access this income after your have gifted it into trust, there is a risk that it could be a gift with reservation of benefit and could lead to tax consequences of the gift.


Who do I want to gift these assets to i.e. who do I want the beneficiaries to be?

  • Bloodline only
  • Children
  • Grand children
  • Children, grandchildren and their spouses

This decision can affect the type of trust you will require and any restrictions in the trust deed.


Who will you appoint as Trustee?

The Trustee of a trust has a big responsibility and a decision about who to appoint should not be made lightly.

Many people choose to appoint professional and independent Trustees. For more information about the Trustee services that Fortress can provide, please click here.


Next Steps:

Once you have considered and answered the above questions, you are now in a position to consult people like us at Fortress to assist you with setting up your UK Trust.

Please contact Michelle Lee to request an application pack.