Managing trusts and tax

Disabled Person’s Interest trust

The client needed a trust for their child to allow them to live independently whilst ring-fencing the assets, but faced an Inheritance Tax liability if a mainstream lifetime trust structure was used.

Stuart established that, because of the child’s circumstances, a Disabled Peron’s Interest Trust could be set up. This meant the Inheritance Tax consequences of more commonly used Trusts didn’t arise. We advised on the terms and structure of the Trust to allow the purchase of property to go ahead without incurring Stamp Duty Land Tax at the surcharge rates. We guided the clients through the establishment and funding of the Trust as well as carrying out the tax compliance work.

The Trust department of Thomson Snell & Passmore were able to achieve tax efficiency for the client and effective protection for their child whilst our Residential Conveyancing department were readily available to facilitate the purchase of the property.

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