Trusts School

Synopsis

This opening session lays the foundations by examining what a trust is in legal terms and why they’re used. We’ll explore the three certainties required for a trust to exist – the roles of settlors, trustees and beneficiaries – and how ownership is divided between legal and beneficial interests. The session will explore the powers available to trustees when administering the trust.

Learning outcomes

By the end of this session, delegates will be able to:

• Describe what a trust is and why trusts exist
• Distinguish between the roles and responsibilities of settlors, trustees and beneficiaries
• Explain  the core fiduciary duties of trustees and how these shape decision making
• Identify the difference between beneficial interests across trust structures

Synopsis

If not understood correctly, taxation can have a significant impact on returns.  This session examines income tax and capital gains tax (CGT) rules for different trust types, the unique treatment of investment bonds held in trust, and the inheritance tax (IHT) framework for lifetime and will trusts. As well as covering the facts, we’ll also highlight some of the common tax traps to watch out for.

Learning outcomes

By the end of this session, delegates will be able to:

• Describe  how income tax applies to trusts and distributions
• Explain CGT treatment and reliefs available to trustees
• Communicate the tax advantages and risks of holding investment bonds in trust
• Summarise the IHT framework for trusts, including entry, periodic and exit charges

Synopsis

In this session we’ll  break down some of the most common trust structures advisers encounter, explaining when and why each may come into existence. From will trusts and personal injury trusts to vulnerable beneficiary and probate trusts, we’ll focus on how  to identify trust types and understanding the quirks that apply to different trust structures.

Learning outcomes

By the end of this session, delegates will be able to:

• Identify different types of trust and explain their core characteristics
• Explain why particular trust structures are used for specific purposes
• Recognise key pitfalls associated with different types of trust

Synopsis

This session focuses on insurance company trusts commonly used in inheritance tax planning. We’ll explore how gift trusts, discounted gift trusts, loan trusts and reversionary interest trusts provide different levels of access of control for the settlor. We’ll also look at the factors that need to be considered when matching an appropriate trust to a particular client.  

Learning outcomes

By the end of this session, delegates will be able to:

• Describe how gift trusts, discounted gift trusts and reversionary interest trusts work
• Explain the IHT treatment of insurance‑based trust planning
• Assess suitability based on control, access and client objectives

Synopsis

This session turns to trustee investment decision making. It considers the legal responsibilities trustees have when it comes to investing, as well as what to look for in trust deeds around investment powers. We’ll also explore suitability, diversification and balancing competing beneficiary interests, with case studies covering bare, interest in possession and discretionary trusts.

Learning outcomes

By the end of this session, delegates will be able to:

• Describe the statutory and fiduciary investment duties of trustees
• Explain the investment powers available under the Trustee Act 2000
• Apply trustee investment principles to match investments to different trust types

Synopsis

The final session pulls everything together, comparing trusts with other mainstream IHT planning solutions such as annuities, whole of life policies and Business Relief. An interactive session, using practical case studies to highlight the strengths and weaknesses of each option, helping advisers choose the most appropriate solution for different situations.  

Learning outcomes

By the end of this session, delegates will be able to:

• Apply the use of trusts confidently as part of an integrated IHT strategy
• Compare trusts with alternative IHT solutions on a like-for-like basis
• Balance tax efficiency with control, flexibility and client objectives
• Articulate the pros and cons of each solution to clients and trustees