Tax Forum :: Free Tax Advice

We (my wife and I) want to set up a discretionary trust for our adult son who has a mental illness and wonder if anybody out there can give us advice on best way forward rather than be ripped off my scrupulous solicitors wanting to pay themselves extraordinary fees per letter as well as and on-going fees.

As a scrupulous solicitor, I would strongly recommend that you have a lawyer prepare the trust deed. It could be a fixed fee. There are several alternatives and the distinction depends on all the circumstances. It is a one-off fee to make sure it is done properly.

For what it is worth: no letters would be involved, there is no need for ongoing fees (although somebody should review it for tax changes every few years) and the solicitor can't even register it for tax anymore as HMRC insist you use a portal that only trustees themselves can try to use (it is a little broken).

Agree with Andrew - especially if it's a more complex trust for a vulnerable person, these have be to carefully drafted.

... the solicitor can't even register it for tax anymore as HMRC insist you use a portal that only trustees themselves can try to use (it is a little broken).

HMRC have promised that the Agent's trust portal will be up and running in October...

I can understand your concern which is perhaps exacerbated if the funds settled may be "small".

However, I would think your primary concern is to make sure your son is looked after as best you can particularly after your death.

Unfortunately, this area is not particularly straight forward and a badly drafted trust can prove catastrophic as can bad tax advice. As well as any tax planning consideration will need to be given to his state benefits (ie you won't want to lose those).

The key is to use a professional (not attempt to do it on your own however easy it may seem) but one who is knowledgeable; not all advisers are, be they lawyers, accountants or others.