transfer of assets to place in trust

[bill on line]

Dear Forum

If you wanted to place your own cash/assets in trust for yourself and not have them treated like a bare trust. (Both the settler and beneficiary are the same person).

Give the cash/assets to another person who then places them in trust for the benefit of beneficiares whom you are one?

I know on gifting assets CGT and IHT PET comes into play.

However if the asset was cash of a non qualifying life insurance policy there is normaly no CGT.

Would this be a method to place ones own assets in trust for benefit your own benefit. Or are there rules to prevent it e.g this talked about preowned assets.

Thank You for your assistance.

Iain

[Simon Sweetman]

The short answer is no, it won't work : the settlements legislation would come into play, and because of the pre-owned assets legislation you might well be worse off. There is also not a great deal of point in placing assets in trust now that the rate of tax for trusts is 40%.

[bill on line]

Thank you Simon for reply

I wanted to find out what current legislation prevented the senario i stated in my original question you gave the answer the settlement legislation.

http://www.ir.gov.uk/manuals/tsemmanual/pdfs/IR270(2000-01).pdf


Example 1 (from this pdf which i think answers my question)
You give a sum of money to your brother to settle on your infant
children. Your brother does so. Although your brother is the actual
named settlor, you will be the real settlor because you have
indirectly provided the funds.

The reason i asked this question is i wanted to know if i could place my own money/assets in discretionary trust for disabled person with yourself as one of the potential beneficiaries.
The reason was not for tax but the UK benefit agency. The benefits agency appears to disregard discretionary trusts capital.

So once again thank you for pointing me to the answer

Iain