Reviewing Trusts Flashcards
What are the factors to consider on death of a life tenant?
Terms of trust
Does the trust come to an end
IHT impact on death of life tenants death
Who are the remaindermen
Are the remaindermen minors
Tax status of remaindermen
Will the capital be appointed to remaindermen
Do the assets of the trust need to be reviewed/suitable/appropriate/ ATR of remaindermen
Seek financial advice if trustee doesn’t have expertise
What factors to review if a change to taxation of investments in trusts is made?
Consider:
Potential need to rebalance/switch investments
Which investments are most suitable after changes
Changes in tax position of beneficiaries
Effect in a change of tax position of settlor
Effects on after tax income
Effects on after tax capital
Effects on objective of trust I.e if set up for uni fees is there effect on their plans
Will the objectives of the trust need to change
Seek professional advice if trustees do not have the right expertise
What factors to review on investments in trust if transferring inspecie unit trusts?
Provisions of trust
Performance of existing/new investments
Investment charges/advice charges
Changed in objectives/income or capital needs
Changed in ATR/CFL
Any CGT liability on disposal/holdover
Economic/legislative changes
