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About Wills and Trusts

What is a Will Trust, what types are there and how can it help you?

Fully independent expertise
We are independent and offer advice on Trusts, Tax-planning and guidance on talking to your family. We’ll work with you to make a plan to ensure your wealth fulfils your wishes for years to come.
Your interests come first
Our philosophy is borne out of many years’ experience working in a professional practice environment. Our existing clients would confirm our ongoing commitment to this philosophy.
We are highly qualified
Continual professional development is an expectation all of our team place upon themselves regardless of how qualified they already are, not just as a requirement for qualified advisers.
Trust is core to our service
Our clients have told us that trust is absolutely essential for them, therefore we hold ourselves to this value and only ever act in our clients’ interest.
Integrity and transparency
We are committed to always explaining our fees and our regulatory obligations before any work is carried out.

Lifetime Trusts and Tax

The tax treatment of Lifetime Trusts merits serious consideration. Because you are gifting the house to the Trust, it may be subject to inheritance tax if its value exceeds the current nil-rate band of £325,000.

Those who transfer their property to a Lifetime Trust may be subject to an immediate 20% tax on any balance exceeding £325,000 (including gifts made in the preceding seven years), while Trustees are required to file tax returns with HMRC. They may incur an additional tax cost of 6% of the value over £325,000 every ten years, in addition to income tax on any payments from the Trust and exit charges on assets leaving the trust.

If the ‘Fiduciaries’ sell or transfer Trust assets to a ‘Beneficiary’, these transactions may also be subject to capital gains tax (CGT). These may also apply when a trust is liquidated, and all assets are transferred to a ‘Beneficiary’.

Capital gains tax (CGT) will be calculated similarly to how it is for individuals, albeit with a reduced annual exemption of £6,000 in 2023/24 and £3,000 in 2024/25 (although this is yet to be confirmed). The exception is if the trust was established for a disabled person.

Additionally, you must consider that all Trusts must be registered with HMRC in the following scenarios:

  • If created during your lifetime, when the Trust is established.
  • If created in your Will, as part of the administration of your estate after your death.

Always seek advice from one of the Berkshire IFA Financial Planning team, before establishing a Perpetual Trust, as the tax implications can be substantial. This is especially true if the Trust's Beneficiaries are non-UK residents, as the rules can rapidly become more complex.

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    220 Wharfedale Rd, Winnersh, Wokingham RG41 5TP Winnersh Wokingham RG41 5TP United Kingdom

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    Albany House, 14 Shute End, Wokingham RG40 1BJ Wokingham RG40 1BJ United Kingdom

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    20 Oxford St, Newbury RG14 1JB Newbury RG14 1JB United Kingdom

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