A trust is a structure that separates control and legal ownership from beneficiaries. This means while one person/company manages the asset or property, another person will receive the financial benefits (the beneficiary). Hence a trust can be set up to have income pass through it and be distributed to several beneficiaries in the most tax effective manner. This can usually reduce the tax paid on the income received when distributed to several people compared to if the income was to be distributed to one person. In fact child beneficiaries of a trust are entitled to receive a certain amount of income before being taxed.
So do you believe you may benefit from operating under a trust?
If so give us a call to see how we can help you understand the operations of a trust and discuss whether it is the right choice for you.
Or maybe you already have a trust set up but aren’t sure of your legal obligations and/or how the trust effects your personal tax return.
Our experienced advisors at Tick Tax can firstly explain how a trust works, and then assist you in distributing income to the trust beneficiaries in the most tax effective method.
A trust could save you thousands in taxes so don’t hesitate to make the decision and give us a call today.