Trusts

This practice note summarises the development of anti-avoidance case law from WT Ramsay v Inland Revenue Commissioners (1982) 54 TC 101 to date. It also includes some practical tips for structuring transactions to reduce the risk of attack by HMRC based on anti-avoidance case law.

This practice note explains the purpose, principal uses of and procedure for Beddoe applications. To view Hugh Norbury's profile, click here.

This practice note looks at why trustees change, outlines the different types of powers to change trustees and explains how to check whether previous trustee changes are valid. It deals briefly with questions about separate trustees for part of the trust fund, whether retiring trustees need protection against future liabilities, how to change trustees if a trustee dies or loses capacity, and unusual trusts and trustees.

A note listing administrative tasks when trustees change.  It  covers providing information to new trustees and confirming their identity, reviewing retainers of trust advisers, managing trust assets, tax compliance, trustee powers of attorney and record-keeping.

A note discussing who chooses trustees, who can be a trustee, how many trustees there can be and factors to consider when making the choice, including conflicts of interest.

A Practice note explaining the principles of co-ownership and how severance can be effected to convert a joint tenancy into a tenancy in common. 

A summary of transactional issues that may be relevant to a declaration of trust for jointly owned property.

Overview of the key legal requirements relating to the execution of deeds and documents under the laws of England and Wales. It reflects the law on execution from 1 October 2009. For details of the law governing execution of deeds and documents before 1 October 2009, see Practice note, Execution of deeds and documents: pre-1 October 2009.

A note explaining when there is a resettlement for capital gains tax purposes when trustees exercise powers of appointment, advancement and transfer. It includes a list of factors pointing to resettlement and summaries of cases on resettlement.

An outline of the common law fiduciary duties, ways of modifying those duties (including the use of Chinese walls) and proposals for reform.

A practice note discussing whether the principle in Re Hastings-Bass [1974]  EWCA Civ 13 still exists following the Court of Appeal decision in Pitt and another v Holt and another; Futter and another v Futter and others [2011] EWCA Civ 197. It explains the effect of this decision, against which permission to appeal has been granted and which may not be followed in offshore trust jurisdictions. It describes how the principle was applied before the decision, with examples of situations in which it was used, cases in which it was relied on to avoid unexpected tax consequences and cases on the limits of the principle. The author is updating this practice note to take into account the Supreme Court decision in Pitt v Holt and Futter v Futter (see Legal update, Hastings-Bass: HMRC wins in Futter but loses Pitt v Holt on mistake (Supreme Court)).  To view Dakis Hagen's profile, click here.

This practice note explains the inheritance tax charges that arise in a relevant property trust. It provides a step-by-step guide to calculating charges and worked examples. It is intended as an introduction for those who are unfamilar with the charge, or as a refresher. NOTE: This resource is being reviewed in light of the 2013 Budget. For more information, see Legal update, 2013 Budget: key private client tax announcements

This practice note explains the effect of the death of the settlor within seven years of the establishment of a relevant property trust on the calculation of inheritance tax (IHT). NOTE: This resource is being reviewed in light of the 2013 Budget. For more information, see Legal update, 2013 Budget: key private client tax announcements

A list of current interest rates that are useful for private client practitioners, with links to earlier rates. It includes interest on pecuniary legacies and the statutory legacy, interest on tax paid late and overpaid, Court Funds Office rates, the Bank of England base rate and the official rate of interest (used to calculate the taxable benefit from beneficial loans and pre-owned assets).

This note deals with the law of limitation applicable to actions against trustees. It is primarily concerned with the statutory limitation periods imposed by the Limitation Act 1980 but also refers to the equitable doctrine of laches. To view James Mather's profile, click here.

A practice note explaining the meaning of parental responsibility for children, who has parental responsibility and how it ends, with examples.

This note considers the law and practice relating to conflicts of interest and/or duty of trustees in the context of pension schemes. It covers the case law and legislation on the general rule against conflicts, exceptions to the rule and the consequences of conflicts. This includes consideration of the key issues arising in relation to pension schemes and a summary of the guidance from the Pensions Regulator. Fenner Moeran, 3 Stone Buildings

A note explaing how the rule against perpetuities applies when drafting, varying and exercising trustee powers, how to determine whether existing powers and appointments are valid and what the consequences are if they are void. It describes the difference between general and special powers of appointment, and between administrative and dispositive powers.

A note explaining what determinable interests and conditions subsequent are, and how the rule against perpetuities applies when drafting them or advising on existing interests.

A practice note describing the consequences of trust interests that are void because they do not satisfy the rule against perpetuities. It covers the effect of void interests on other trust interests, alternative ways to achieve the settlor's intentions, tax consequences and claims by or against the trustees.

This practice note examines powers of attorney, in particular, general powers of attorney and their commercial application. It includes links to standard documents for general powers of attorney and specimen execution clauses. For further details on other types of powers of attorney, see Practice note, Lasting powers of attorney and Practice note, Enduring powers of attorney.

This tracker follows the progress of English legislation, EU legislation, and Law Commission and other projects that may lead to legislation of interest to private client practitioners.

A note tracking the progress of the Finance Act 2009 as a whole, and the progress of specific measures that are of interest to private client practitioners from the 2008 Pre-Budget Report, 2009 Budget and Finance Bill 2009 to enactment.

A note tracking the progress of the Finance Bill 2011 as a whole, and the progress of specific measures that are of interest to private client practitioners from the time of announcement in the 2011 Budget or elsewhere to enactment in the Finance Act 2011 or other legislation.

A note tracking the progress of the Finance Bill 2013 as a whole and specific tax measures of interest to private client practitioners.  It will cover developments from August 2012 to July 2013 inclusive, with links to information on earlier and later developments.

This practice note explains what a protector is in the context of a trust, who can be a protector and what powers a protector can have.To view Simon Hatton's profile, click here.To view Gareth Tilley's profile, click here.

Ths note explains that a Quistclose trust is a form of resulting trust that may arise when funds are transferred for specific and exclusive purposes, as explained in Twinsectra Ltd v Yardley and others [2002] UKHL 12. It gives examples from case law of loans and other situations, and summarises factors to consider when advising.

An outline of equitable remedies including rectification, specific performance, injunctions, account of profits, subrogation, rescission and declarations. The doctrines of equity are also discussed.

A practice note on the mixed funds ordering rules introduced by the Finance Act 2008. NOTE: This resource is being reviewed in light of the 2013 Budget. For more information, see 2013 Budget: key private client tax announcements.

This note contains links to practice notes covering: the meaning of "residence" and "ordinary residence" in the context of UK taxation; the meaning of "domicile" and the UK tax implications for individuals of these concepts.

This practice note explains what a sham trust is, with examples from case law. It considers the elements of intention and standard of proof necessary to show that a trust is a sham, and the consequences if it is found to be one. It lists practical steps which can reduce the chances of a trust being attacked as a sham. To view Frank Hinks' profile, click here.

This note considers the practical impact of stamp duty on commercial transactions. NOTE: This resource is being reviewed in light of the 2013 Budget. For more information, see Legal update, 2013 Budget: key business tax announcements.

A note containing links to tax data of interest to individual taxpayers and trustees (including personal representatives).  It covers rates, allowances and time limits for inheritance tax, capital gains tax, income tax and stamp taxes, and tax limits that apply to registered pension schemes and individual savings accounts. It includes links to interest rates on tax paid late and tax overpaid.

A note containing tables of income tax rates and allowances for individuals and trusts, deadlines for returns and payments, and time limits for assessments and claims, with links to interest rates on tax paid late and overpaid tax, and to more detailed information about income tax.

A note containing tables of rates of stamp duty land tax, stamp duty and stamp duty reserve tax, deadlines for returns and payments, and time limits for assessments and claims, with links to intereste rates on tax paid late and overpaid tax, and to more detailed information about stamp taxes.

A practice note on the taxation of capital payments to UK beneficiaries of offshore trusts under section 87 of the Taxation of Chargeable Gains Act 1992. NOTE: This resource is being reviewed in light of the 2013 Budget. For more information, see 2013 Budget: key private client tax announcements.

An overview of the capital gains tax treatment of UK resident trusts set up by UK individuals. This note outlines how capital gains tax applies to trusts, including special rules for trusts in which the settlor may be interested and trusts for vulnerable beneficiaries.

An overview of the income tax treatment of UK resident trusts set up by UK individuals. This note outlines how income tax applies to trusts, including special rules for trusts from which the settlor may benefit and trusts for vulnerable beneficiaries.

A practice note about how to transfer trust assets to or from a trust and between trustees, with details of how to transfer the most common types of trust asset. The note also covers transferring part of an asset, difficulties that arise if a person involved in the transfer of assets dies, lacks capacity or is a minor, and powers of the court to transfer trust assets.

A practice note on transfers of equity.

This practice note examines trustees' statutory and common law duties of skill and care in the administration of trusts, as applied to various powers of trustees (for example, powers of investment and delegation). It also considers issues that arise when claims are brought for breach of these duties.To view Peter McMaster QC's profile, click here.To view Matthew Morrison's profile, click here.

This note provides an overview of the UK/Switzerland tax co-operation agreement to tackle tax evasion by UK taxpayers holding funds in Swiss bank accounts. The agreement came into force on 1 January 2013. The note discusses the anonymous one-off payment to settle past tax liabilities, the withholding tax on income and capital gains going forward and the one-off withholding tax on death. It also looks at the requirements for disclosure as an alternative to these deductions, further protection in the agreement for HMRC (such as information requests) and options for UK residents with Swiss bank accounts. We would welcome subscribers' views on the practical implications of the agreement (see Your views). Note: this resource is being reviewed in the light of the 2013 Budget. For more information, see Legal update, 2013 Budget: key private client tax announcements.

This practice note describes five ways of varying a trust: by consent of the beneficiaries; under the inherent jurisdiction of the court; under section 57 of the Trustee Act 1925 and section 64 of the Settled Land Act 1925, for specific transactions; and under the Variation of Trusts Act 1958. To view Sophie Holcombe's profile, click here.

This practice note explains the rules that determine the meaning of express or implied references to an individual's children (and other relationships that depend on parentage) in wills and trust documents, unless the testator or settlor has included express provisions overriding the rules or a different meaning applies as a matter of construction of the particular will or trust.

Tables summarising the key features of different types of will trust for minors, including how they are taxed.