Trusts and Executorships
Trusts remain one of the most effective and versatile tools in modern tax and estate planning. They allow individuals to manage, protect, and distribute their assets efficiently, often providing significant tax advantages and ensuring that wealth is preserved for future generations.
At Holland & Co Chartered Accountants, we have extensive experience in advising clients on the creation, administration, and optimisation of trusts. Our expertise ensures that your arrangements are structured correctly, compliant with current legislation, and aligned with your long-term financial objectives.
The Role of Trusts in Tax and Estate Planning
Trusts are particularly valuable for holding shares in private companies, safeguarding assets within family financial structures, and managing long-term wealth in a tax-efficient way. They are commonly used to:
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Reduce inheritance tax (IHT) by transferring ownership of assets outside of your taxable estate while retaining control over how and when those assets are distributed.
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Provide funds for education or maintenance, for example, setting aside resources to support children or grandchildren at university.
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Protect vulnerable beneficiaries, such as individuals who are mentally incapacitated or unable to manage financial affairs independently.
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Control access to property or wealth, ensuring assets are distributed only under certain conditions or at specific times.
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Support charitable giving, either through charitable trusts or as part of a wider philanthropic estate plan.
By transferring assets into trust, you can ensure that wealth is managed responsibly, preserved for the next generation, and distributed according to your wishes — often outside the reach of inheritance tax.
Types of Trusts
There are several types of trusts, each designed for different purposes and treated differently for tax purposes. The main categories include:
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Life Interest Trusts (Interest in Possession Trusts)
These allow a named beneficiary to receive income from the trust during their lifetime, while the underlying capital passes to other beneficiaries after their death. This is often used for spouses or civil partners to ensure ongoing financial security. -
Discretionary Trusts
The trustees have full discretion over how and when to distribute income or capital among a class of beneficiaries. This type is ideal for families who wish to retain flexibility over distributions or protect assets from potential claims or future risks. -
Accumulation and Maintenance Trusts
Designed to provide for children or young beneficiaries, these trusts allow income to be accumulated within the trust until the beneficiary reaches a specified age, after which they may receive income or capital. -
Bare Trusts (Simple Trusts)
These are straightforward arrangements where assets are held by a trustee on behalf of a named beneficiary who has an absolute right to the income and capital. They are often used for holding investments or savings for minors until they reach adulthood.
Each trust type carries its own legal, tax, and administrative implications, including how income, capital gains, and inheritance tax are assessed. Choosing the correct structure — and maintaining it properly — is essential to ensure maximum benefit and compliance.
Our Professional Trust Services
At Holland & Co, we provide a comprehensive trust and executorship service, including:
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Advice on trust suitability – assessing your personal circumstances, financial objectives, and family arrangements to determine the most appropriate type of trust.
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Trust formation and documentation – drafting trust deeds and liaising with solicitors where required to ensure legal precision.
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Ongoing administration – maintaining trust accounts, preparing annual returns, and ensuring compliance with HMRC reporting obligations.
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Tax planning and advice – optimising the trust structure for income tax, capital gains tax, and inheritance tax efficiency.
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Appointment of trustees – advising on suitable individuals or professionals to act as trustees to ensure prudent management and compliance.
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Trust accounting services – including bookkeeping, investment tracking, and preparation of financial statements for the trust.
We also provide specialist advice on the preparation of wills and can help integrate your trust arrangements into a wider estate plan, ensuring your wishes are clearly defined and tax-efficiently executed.
Executorship and Estate Administration
In addition to trust management, we also act as executors for estates, ensuring that your assets are distributed in accordance with your will and all legal, tax, and administrative requirements are met. As experienced accountants, we handle all aspects of estate administration, including:
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Valuation of assets and liabilities
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Calculation and submission of inheritance tax returns
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Settlement of debts and taxes
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Preparation of estate accounts
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Distribution of remaining assets to beneficiaries
By appointing Holland & Co as executors, you can ensure that your estate is administered efficiently, transparently, and in full accordance with your wishes, providing reassurance for both you and your family.
Why Professional Guidance Matters
Trust and estate planning is a sophisticated area of financial management that requires expert knowledge of tax law, inheritance planning, and trust administration. Mistakes or poor structuring can lead to unnecessary tax liabilities, disputes among beneficiaries, or HMRC compliance issues.
By working with Holland & Co, you gain access to specialist advice, meticulous administration, and decades of experience in guiding individuals and families through complex trust and estate matters. Our goal is to protect your wealth, preserve your legacy, and give you complete peace of mind.
Contact us today to discuss how we can help you establish a trust, prepare your will, or appoint professional executors — ensuring your assets are managed, protected, and transferred exactly as you intend.