Administration of a Trust
The administration of a trust involves complex legal and financial considerations. The experienced team of trust administration experts at JMW can help you to secure your assets and plan for the future by advising and overseeing the administration process of an existing trust, or helping you to set up a new one.
Whether you are looking to have one of our team manage certain responsibilities of the trustees or help you to put the right trustees in place, you should call us for advice. We provide comprehensive trust administration services to ensure your trust is managed effectively and in compliance with all legal requirements.
JMW caters to a diverse range of clients including business owners, high-net-worth individuals and families. Our professional trustees possess the expertise to handle the day-to-day responsibilities of administering a trust. By using a professional trustee from JMW, you benefit from our extensive knowledge and experience. We will protect the trust's assets and manage them in the best interest of the beneficiaries.
For help with the administration of your trust, speak to the team at JMW today by calling 0345 872 6666. Alternatively, fill in our online enquiry form and we will return your call at a time convenient for you.
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Our Trust Administration Services
JMW is experienced with all aspects of setting up and managing trusts. Our comprehensive trust administration services ensure that your trust is managed effectively and in compliance with the relevant tax laws. We advise trustees as to all the responsibilities involved and what will be required of all participants to help the trust to operate smoothly.
Our team can provide expert guidance on the following areas of trust management:
- Adding new trustees: we can help you identify and appoint suitable trustees who will act impartially and in the best interests of the beneficiaries.
- Suggesting ways to transfer funds: our team can provide innovative solutions for the efficient transfer of funds and assets in compliance with all legal and tax obligations.
- Changing the trust’s structure: if your circumstances change, we can advise on restructuring the trust to better meet your needs, whether that involves creating a discretionary trust, a bare trust, or another legal arrangement.
- Inheritance Tax (IHT): we provide strategic advice to minimise IHT liabilities, ensuring your beneficiaries receive the maximum benefit.
- Income Tax: our experts guide you through the Income Tax implications of trust assets and distributions, helping you stay compliant while optimising tax efficiency.
- Capital Gains Tax: we assist in managing Capital Gains Tax obligations, and advise on the best strategies for asset transfers and sales within the trust.
- Stamp Duty Land Tax (SDLT): when dealing with property transfers, our team ensures that all SDLT requirements are met, avoiding any unexpected liabilities.
We will work closely with you to assess the trust and determine ways that the administration could be improved. This may include optimising the process of transferring assets in and out of the trust. We understand the importance of proper planning and will help you to set up the trust so that, when the time comes for the transfer of assets, they go to the correct individuals or organisations in a tax-efficient manner.
Our trust administration process is designed to ensure that the trust's assets are managed in accordance with the terms of the trust deed and the interests of the beneficiaries. We offer practical advice and solutions tailored to your specific needs, whether you require assistance with day-to-day trust management or strategic planning for future asset transfers.
Who Is Responsible for Administering a Trust?
Administering a trust involves several key responsibilities to ensure the trust operates effectively and in the best interests of the beneficiaries.
Trustees are the individuals or organisations responsible for managing the trust's assets in accordance with the terms set out in the trust deed. They have a fiduciary duty to act impartially and in the best interests of all beneficiaries, and to meet the trust's objectives. The responsibilities of trustees include:
- Overseeing the trust's assets, investing and maintaining them properly
- Ensuring that the trust complies with relevant tax regulations
- Distributing assets to beneficiaries according to the terms of the trust
- Keeping detailed records of all transactions and decisions related to the trust and providing regular reports to the beneficiaries
At JMW, we provide comprehensive support to trustees, whether they are private individuals or professional trustees. We advise trustees on their duties and responsibilities and help them handle their legal and financial responsibilities in compliance with the relevant regulations.
What Are the Benefits of Using a Professional Trustee?
Many individuals choose to appoint professional trustees to manage their trusts. Professional trustees might include solicitors, accountants or financial advisers, all of whom can bring expertise and experience to the role, administer the trust efficiently and maintain compliance with all legal and tax obligations.
Using a professional trustee for trust administration offers several significant advantages over appointing a non-professional, such as a family member or friend:
- Professional trustees possess a greater understanding of trust law, tax rules and the complexities involved in managing trusts. Their expertise means that your trust can be administered efficiently and in full compliance with legal requirements.
- A professional trustee acts impartially, free from the personal biases and potential conflicts of interest that can arise when family members or friends serve as trustees. This impartiality is vital for maintaining the integrity of the trust and ensuring that all decisions are made in the best interests of the beneficiaries.
- Professional trustees bring a high level of administrative efficiency to trust management. They handle the day-to-day responsibilities of the trust, such as managing assets, maintaining records, and filing taxes on time, allowing you to focus on other important matters.
- Professional trustees provide continuity and stability in trust administration. Unlike individual trustees who might face personal issues or unforeseen circumstances, a professional trustee can manage the trust consistently over time and safeguard the interests of the beneficiaries.
By choosing a professional trustee from JMW, you gain access to a wealth of resources and support. Our team includes experts in various aspects of trust administration, tax planning, and legal compliance.
Why Choose JMW?
Our trust law solicitors are experienced in dealing with high-value estates, so you can rely on us to advise you on your finances and property with the knowledge that your affairs are in good hands. We have assisted families, business owners, entrepreneurs, sports professionals, entertainers and medical professionals. Our ability to cater to such a diverse clientele demonstrates our expertise in handling varied and intricate trust administration needs.
JMW has been recognised in Chambers & Partners and the Legal 500 for the quality of our services. We have won industry awards, including Team of the Year at the Manchester Legal Awards. These accolades reflect our commitment to providing exceptional legal services and our standing as a leading firm in trust administration.
Our team is made up of dynamic solicitors who understand the environments you operate in and the need for bespoke succession planning. By choosing JMW, you benefit from our extensive knowledge, experience and dedication to providing exceptional trust administration services.
FAQs About the Administration of a Trust
- What can I include in or add to a trust?
Financial and property assets are the most common contents of a trust. However, trusts are versatile legal arrangements that can encompass a wide range of assets. In addition to financial assets like cash and investments, you can include insurance policy payouts, valuable items such as art, jewellery and collectibles, and business assets. Including diverse assets in a trust can provide comprehensive protection and help you to manage all your valuable possessions according to your wishes.
Adding assets to a pre-existing trust is a straightforward process. It is important to consult with trust administration solicitors to ensure the additions comply with all legal requirements and optimise tax efficiency. For instance, incorporating real estate or other high-value assets may have specific implications for Inheritance Tax planning; at JMW, we can guide you through this process to ensure that your trust is structured correctly and that all assets are effectively protected and managed.
- What is a trust dispute?
Trust disputes arise when one or more parties involved in the creation, administration, or distribution of a trust disagree with decisions made about it. These disputes can occur for various reasons, such as differing interpretations of the trust deed, perceived mismanagement of the trust's assets, or disagreements among beneficiaries and trustees.
A trust dispute is a legal process in which the parties try to settle their disagreement whether through mediation, arbitration, or court proceedings. Mediation and arbitration can offer a less adversarial and more cost-effective means of resolving disputes, while court proceedings may be necessary for more complex or contentious issues.
We can help you start or defend against a trust dispute if you find yourself in this situation. If a dispute is not resolved quickly, it can be taken to court.
- How are trusts taxed?
Trusts are subject to various taxes, although the specific liabilities that apply will depend on the type of trust and its structure. For example:
- IHT: trusts may be liable for IHT on the transfer of assets into the trust and on certain distributions.
- Income Tax: trusts must pay Income Tax on any income generated by the trust's assets.
- Capital Gains Tax: when trust assets are sold or transferred, Capital Gains Tax may be applicable.
- SDLT: this tax applies to purchases or transfers of property.
At JMW, we provide comprehensive advice to ensure your trust complies with all relevant tax laws and help optimise tax efficiency. Visit our Taxation of a Trust page for more information.
Talk to Us
For more information about how we can help to improve your trust administration, call our expert solicitors today on 0345 872 6666, or fill in an online contact form and we will return your call at a convenient time.
