HMA ACCOUNTANTS

Family Trusts

Trusts can be complex but can also have huge benefits: Expert Guidance from HMA Accountants

At HMA Accountants, we understand the importance of planning for the future of your family. Family trusts are a valuable tool that can help you achieve your inheritance goals, protect your assets, and ensure your wealth benefits future generations.

What is a Family Trust?

A family trust is a legal arrangement where you transfer ownership of assets (such as property, investments, or cash) to a trustee. The trustee manages the assets for the benefit of beneficiaries as outlined in the trust agreement. This allows you to maintain some control over how your assets are distributed and potentially minimize tax burdens for your beneficiaries.

Benefits of Family Trusts:

Inheritance Tax Planning: Family trusts can be a powerful tool for reducing your Inheritance Tax (IHT) liability. Assets placed in a trust may be partially or entirely removed from your estate, potentially lowering the amount of tax your beneficiaries have to pay.
Asset Protection: Trusts can shield your assets from potential creditors or long-term care costs.
Controlled Distribution of Assets: You can specify when and how your beneficiaries receive their inheritance. This can be particularly beneficial for younger beneficiaries, ensuring they receive the assets responsibly.
Flexibility: There are several types of family trusts, each with its own advantages. Our experts can help you choose the trust that best suits your specific goals and circumstances.

Common Types of Family Trusts:

Discretionary Trust: The trustee has the discretion to decide how and when the trust’s assets are distributed to beneficiaries.
Interest in Possession (Life Interest) Trust: This trust provides income from the trust assets to one beneficiary for their lifetime, with the remaining assets then passing to another beneficiary upon their death.
Accumulation Trust: Income generated by the trust is reinvested until a specific event occurs, such as a beneficiary reaching a certain age.

Why Choose HMA Accountants for Family Trusts:

Experienced Guidance: Our team of qualified accountants has extensive experience in family trusts and can guide you through the entire process.
Tailored Solutions: We take the time to understand your unique family situation and goals, then recommend the most suitable trust structure.
Tax Optimization: We leverage our tax expertise to minimize your IHT liability and ensure your family benefits from effective tax planning.
Clear Communication: We explain complex legal and tax concepts in a clear and concise manner, empowering you to make informed decisions.

Plan for Your Family's Future:

Family trusts can be a valuable tool for safeguarding your legacy and ensuring your loved ones inherit your wealth smoothly. Schedule a free consultation with HMA Accountants today. We’ll help you explore your options, choose the right trust structure, and create a plan that protects your family’s financial future for generations to come.