Hello IHT and Trust forum
A solicitor said holding property within a Trust is "messy"
At the time I did not ask him to explain why it is "messy" as there were other points to be covered.
Cons
OK, we have the periodic and exit charges on Trust.
So if the trust's assets are above the Nil Rate band the trustees need cash to pay the IHT bill.
1, So if the only asset in the trust is a property I could understand there could be problems for the trustees paying IHT bills.
2, Maintenance of the property if this trusts only asset where the maintenance money coming from.
4, improvements to the property someone is possibly adding value to the settlement if the money to pay for the improvements is not coming from the settlement itself.
Pros
1, The property if not rented out etc would not be producing any income, so a simple annual Trust income tax return.
2, Can use a Beneficiaries principal private residents relief no CGT on property in the trust.
3, Improvements to the property if only a part share of a property is owned by the settlement. Would a part share get around any improvements adding value if the trustees did not pay for the improvements, as the settlements share of the property would decline percentage-wise depending on the improvement uplift, this was my own idea.
regards
Andrew
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch