Managing your client’s trust ― overview

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note gives an overview of the ‘Managing your client’s trust’ sub-topic. Why should trust accounts be kept and in what format? How do you prepare the accounts? It also considers payments of income and capital to beneficiaries in cash or in specie and the considerations to be made by trustees when making such a distribution. The support for beneficiaries in receipt of state benefits and the rules in respect of accumulating income are considered.

Payments to trust beneficiaries

The Payments to trust beneficiaries guidance note considers the trustees’ powers to make payments and whether the payment made is income or capital. It is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not targeted at lawyers. It considers the issues that trustees should take into account before making a payment in respect of their powers and in respect of the different types of trust. It also considers whether the payment is of capital or income and the effect of the

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