A trust can be a very
useful financial structure in many situations,
perhaps when an outright gift or bequest
to an individual may be inappropriate. Trusts
are taxed independently of the beneficiaries,
with their own Self Assessment Return. This
Return also deals with Estates in the course
of administration, which have their own
special
rules with regard to the treatment of income
arising for tax purposes as far as the beneficiaries
are concerned.
With the various types
of trust available under UK law, whether created
during lifetime or on death, choosing the
right form of trust is very important. Understanding
how these trusts work and how they are treated
for tax purposes is also very important.
