ADMINISTRATION OF FAMILY TRUSTS

The trust and probate management team in the Private Capital Group is responsible for the administration of trusts and estates.
Building originally from our expertise in advising private clients on tax planning and trust related issues, the department has, over the years, established many trusts on behalf of individuals. Trusts can also result from probates. These trusts fall into three categories – life interest, discretionary and accumulation & maintenance trusts. All trusts need to be properly run, following basic legal principles, and many have to file tax returns. Trustees run the risk of being potentially personally liable if they fail to carry out these duties.

How can we help trustees?
There are a number of things we can do to make sure that everything is done properly.

First, typically the management of private trusts involves making payments to beneficiaries. They may have a right to the income or capital (life interest trusts) or receive it at the exercise of the trustees’ discretion (discretionary and accumulation & maintenance trusts). Trust income is derived usually – although not exclusively – from stock exchange investments. We can administer these payments.

Secondly, we administer trusts worth hundreds of millions of pounds, dealing with investment advisers on a daily basis. We are therefore well placed to monitor the investment management and ensure that regular reports are provided to the Trustees. This means we can make sure that income and capital funds are made available as and when needed.

Thirdly, sometimes a separate Trust bank account is operated which receives income and is used to deal with payments to beneficiaries and the administrative expenses of the Trust. Although the Trustees must make all decisions regarding distribution of income where appropriate, we can help run the bank account and, in appropriate cases, we are willing to administer money on behalf of the Trust.

We are also involved in the arrangement of regular trustees’ meetings. We make sure that the trustees consider all issues relevant for the decision making process and that this is properly minuted.

Finally, the team is also experienced in dealing with the necessary compliance issues for example preparing Inheritance Tax and annual Income and Capital Gains Tax Returns and (where required) annual trust accounts.

If the trust contains particular assets such as shares in private companies, land or valuable antiques then difficult legal issues can arise from time to time. We can make sure you carry out your legal duties and lessen the risk of an attack by a disgruntled beneficiary.

For further information, please contact: