| Tax Avoidance Schemes on 14:45 - Sep 4 with 380 views | jopreston |
| Tax Avoidance Schemes on 14:36 - Sep 4 by saint901 |
What is a "trust firm" please?
I've been in this space a long time and never heard of such a thing.
When we advise clients to set up or form a trust, we have a firm of solicitors do the necessary deeds etc.
Come to that, I'm not sure what a "living trust" is either.
Trusts can be created by any person who is alive and sometimes, a trust can be established via the will of a deceased person. Trusts can also be set up by a company or other incorporated entity.
But what is a "living trust" please? |
Trust Firm. Trust Company.
If you are truly in that line you would know what a living trust is. You have said it in the next paragraph yourself. Factually, it cannot be advertised. I know this and it is my job. Government watchdog rules. One cannot advertise a scheme/program etc. that is encouraging people to avoid tax in that way. This was 9 years ago, so maybe it has changed. |  | |  |
| Tax Avoidance Schemes on 15:04 - Sep 4 with 360 views | saint901 |
OK thanks.
A trust company is one that is staffed by those expert or competent in administering trust assets. Often they at as "professional trustees" and will be registered with a local regulator to conduct such business.
For a number of tax reasons, trust companies are often not in the UK (because often the purpose of a trust is to hold assets offshore).
If I have interpreted your response correctly a "living trust" is one established by a living person.
So I could, for example, set up a trust for my children, transfer assets to it and they would benefit immediately and/or later, depending on the terms of the trust.
Such devices are often used to avoid inheritance tax. Subject to some care over gifts with reservations etc they can be useful in avoiding tax.
There is no central register of trusts registered in the UK. This Gov't and others have often said that they will introduce law to create a public register but somehow it never quite comes off.
Most firms advising on tax/estate planning will advertise the fact that trusts can be used as above.
https://www.evelyn.com/discover/iht-and-estate-planning-advice-and-solutions-v2/
As an example.
Accepting that it's been perhaps 30 years since I last did personal tax planning - and things can change a lot in that time - I was not aware of any prohibition on advertising the effects of trusts or how to create and manage them. if you have a link to the relevant information saying that, I'd appreciate it. | | | |
| Tax Avoidance Schemes on 15:11 - Sep 4 with 354 views | jopreston |
| Tax Avoidance Schemes on 15:04 - Sep 4 by saint901 |
OK thanks.
A trust company is one that is staffed by those expert or competent in administering trust assets. Often they at as "professional trustees" and will be registered with a local regulator to conduct such business.
For a number of tax reasons, trust companies are often not in the UK (because often the purpose of a trust is to hold assets offshore).
If I have interpreted your response correctly a "living trust" is one established by a living person.
So I could, for example, set up a trust for my children, transfer assets to it and they would benefit immediately and/or later, depending on the terms of the trust.
Such devices are often used to avoid inheritance tax. Subject to some care over gifts with reservations etc they can be useful in avoiding tax.
There is no central register of trusts registered in the UK. This Gov't and others have often said that they will introduce law to create a public register but somehow it never quite comes off.
Most firms advising on tax/estate planning will advertise the fact that trusts can be used as above.
https://www.evelyn.com/discover/iht-and-estate-planning-advice-and-solutions-v2/
As an example.
Accepting that it's been perhaps 30 years since I last did personal tax planning - and things can change a lot in that time - I was not aware of any prohibition on advertising the effects of trusts or how to create and manage them. if you have a link to the relevant information saying that, I'd appreciate it. |
Yes, you can do that for your kids. It is very in depth and the vehicle has many facets to it. I do not pretend to understand it fully, I only learned about it as we were hired to help them grow their business by way of Google, IG, FB etc. The company received a letter from a government department insisting they stop! The reason given in not so many words was that it is not legally allowed to advertise a loophole/system/program, call it what you will, that benefits the people and takes money out of the tax office coffers.
However, rich people, footballers, pop stars etc, are all aware of it and have one. But the working classes are not allowed to know about it. I am very close to this business still to this day. They have moved now more into Will and Trust storage facilities and legal contests etc. | | | |
| Tax Avoidance Schemes on 15:56 - Sep 4 with 325 views | Chesham_Saint |
| Tax Avoidance Schemes on 15:11 - Sep 4 by jopreston |
Yes, you can do that for your kids. It is very in depth and the vehicle has many facets to it. I do not pretend to understand it fully, I only learned about it as we were hired to help them grow their business by way of Google, IG, FB etc. The company received a letter from a government department insisting they stop! The reason given in not so many words was that it is not legally allowed to advertise a loophole/system/program, call it what you will, that benefits the people and takes money out of the tax office coffers.
However, rich people, footballers, pop stars etc, are all aware of it and have one. But the working classes are not allowed to know about it. I am very close to this business still to this day. They have moved now more into Will and Trust storage facilities and legal contests etc. |
Yet again I ask the question, what does "rich" mean? Can working class people not be rich as you seem to believe that they are "not allowed to know about it"...
And what is "Working Class" today? Is it the same as "hard working people"? And, for that matter, what constitutes "hard work"? |  |
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| Tax Avoidance Schemes on 16:02 - Sep 4 with 316 views | jopreston |
| Tax Avoidance Schemes on 15:56 - Sep 4 by Chesham_Saint |
Yet again I ask the question, what does "rich" mean? Can working class people not be rich as you seem to believe that they are "not allowed to know about it"...
And what is "Working Class" today? Is it the same as "hard working people"? And, for that matter, what constitutes "hard work"? |
Rich in this case = footballers, pop stars, Movie stars, Big business men. Multi millionaire types.
Working class in this case, Estate agent managers, Advertising consultants, you know exactly to what I am alluding.
I am telling you a FACT i learnt from first hand experience, just as I am sure an estate agent will tell you that you cannot advertise a property as a massive and stunning family home. | | | |
| Tax Avoidance Schemes on 16:06 - Sep 4 with 311 views | jopreston |
Just checked again and indeed I am correct in the main way I was alluding. You can advertise a trust but ONLY for the benefits such as controlling what a person gets. For example, some people set up trusts to stop their alcoholic son from receiving a huge lump sum and blowing it. So the trust sets it up that he will receive a monthly income. You can advertise this and other such similar benefits but you CANNOT advertise its main benefit, which is to avoid IHT in full. | | | |
| Tax Avoidance Schemes on 16:09 - Sep 4 with 309 views | DorsetIan |
| Tax Avoidance Schemes on 15:04 - Sep 4 by saint901 |
OK thanks.
A trust company is one that is staffed by those expert or competent in administering trust assets. Often they at as "professional trustees" and will be registered with a local regulator to conduct such business.
For a number of tax reasons, trust companies are often not in the UK (because often the purpose of a trust is to hold assets offshore).
If I have interpreted your response correctly a "living trust" is one established by a living person.
So I could, for example, set up a trust for my children, transfer assets to it and they would benefit immediately and/or later, depending on the terms of the trust.
Such devices are often used to avoid inheritance tax. Subject to some care over gifts with reservations etc they can be useful in avoiding tax.
There is no central register of trusts registered in the UK. This Gov't and others have often said that they will introduce law to create a public register but somehow it never quite comes off.
Most firms advising on tax/estate planning will advertise the fact that trusts can be used as above.
https://www.evelyn.com/discover/iht-and-estate-planning-advice-and-solutions-v2/
As an example.
Accepting that it's been perhaps 30 years since I last did personal tax planning - and things can change a lot in that time - I was not aware of any prohibition on advertising the effects of trusts or how to create and manage them. if you have a link to the relevant information saying that, I'd appreciate it. |
There very much IS a central register of trusts in the UK:
https://www.gov.uk/guidance/register-a-trust-as-a-trustee
Some trusts are exempt, but the general rule is now registration. | |
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| Tax Avoidance Schemes on 16:39 - Sep 4 with 286 views | saint901 |
| Tax Avoidance Schemes on 16:06 - Sep 4 by jopreston |
Just checked again and indeed I am correct in the main way I was alluding. You can advertise a trust but ONLY for the benefits such as controlling what a person gets. For example, some people set up trusts to stop their alcoholic son from receiving a huge lump sum and blowing it. So the trust sets it up that he will receive a monthly income. You can advertise this and other such similar benefits but you CANNOT advertise its main benefit, which is to avoid IHT in full. |
If this interpretation was correct I'd say that every law and trust firm I have had dealings with in the last 30+ years has been breaking the law - advertised or not.
https://octopusmoney.com/wealth-planning
A friend of mine is very senior in this outfit and has spent a long time designing and executing products to "protect wealth" which mainly means keeping assets out of the way of IHT using trusts. To the best of my knowledge they have not had a STOP notice from HMRC.
The action you describe from HMRC is not something I have seen from them in over 40 years working in tax. I do know that HMRC will have a "quiet word" sometimes but their usual approach is hands off and then go to Tribunal/Court if something appears that they don't like.
If you can show me link to an instance or preferably to a piece of law, I'd be interested.
Every day is a learning day. | | | |
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| Tax Avoidance Schemes on 16:40 - Sep 4 with 285 views | saint901 |
Agreed but this is very recent and the number of exemptions makes it largely useless. | | | |
| Tax Avoidance Schemes on 17:42 - Sep 4 with 277 views | DorsetIan |
| Tax Avoidance Schemes on 16:40 - Sep 4 by saint901 |
Agreed but this is very recent and the number of exemptions makes it largely useless. |
It started in 2017 and very few trusts get an exemption.
Whether or not it is 'useless' depends on what you think it is for. But registering virtually every trust, and keeping their info up to date, is now a massive ball ache for any lawyer or accountant. | |
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| Tax Avoidance Schemes on 18:17 - Sep 4 with 264 views | saint901 |
Thanks - I clearly have a lot of catching up to do if I want to go back into this space.
(Which I don't). | | | |
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