UUÂãÁÄÖ±²¥

This guidance covers UK resident trusts only. For information on non-resident trusts, see the UK tax position of non-resident trusts guidance note.

Trusts continue to be popular in succession planning. The potential benefits of using trusts include:

1. •

   to give flexibility over future destination of property and to take account of future changes in the tax regime

2. •

   protection of property from unsuitable / undesired parties obtaining control (for example irresponsible children)

3. •

   protection of property for the benefit of certain specified beneficiaries (for example for the benefit of the deceased’s own children as opposed to step children)

4. •

   ensure suitable destination of life policies / lump sum payments under pension schemes, etc

5. •

   certain trusts are advantageous for tax purposes (see below)

6. •

   lifetime transfers into trusts are generally