United Kingdom: Trusts

In England and Wales after a person's death their will is open to public inspection. Certain Royal wills, such as those of the late Queen Elizabeth and the Queen Mother, have been sealed (i.e. not made public).

Various trust structures exist within the English legal system to protect beneficiaries who may struggle to manage their financial affairs, and who may be more at risk of financial abuse.

In this scenario, an international private client, let's call him John, a UK resident in his early 70s and a widower, found himself confronted with a substantial Inheritance Tax (IHT) bill.

Many people want to help their children or loved ones while they are still alive to see the benefit.

Significant changes were introduced to the UK's tax rules for non-domiciled individuals from 6 April 2025. The remittance basis for non-UK domiciled individuals has been replaced with a residency-based system.

The Honourable William Francis Seymour, Earl of Yarmouth v Ragley Trust Company Limited & Ors [2025] EWHC 1099 (Ch).

Employee Ownership Trusts (EOTs) surged by 27% last year in the UK, attracting founders with tax efficiency, legacy preservation, and enhanced employee rewards amid potential capital gains tax changes.

Since the introduction of Employee Ownership Trusts (EOTs) in 2014, the sector has expanded significantly, allowing many companies to transition into employee ownership. This article discusses the complexities and implications of exiting EOT ownership, including tax considerations, the roles of trustees, company directors, and potential buyers, emphasizing that such decisions should prioritize employee interests and be well-informed.

Trusts are a complex yet valuable tool for future planning, offering benefits in asset management, tax planning, and care planning. Expert guidance is essential to navigate their rules and suitability.