Important Information about Trusts

Author Image The Technical Team
2 minutes read
Last updated on 6th Apr 2019

Overview

Everything you always wanted to know about trusts but were afraid to ask! This document shares the answers to common questions about existing trusts including duties and investment considerations for trustees, how to identify the type of trust and if the trustees can buy a bond. Learn how a trust can be brought to an end and who is assessed for the tax on a chargeable gain on a bond in trust.

Key Points

There are many considerations for trustees to take into account when investing trust money.

The Important information about Trusts document shares the answers to common questions about existing trusts. You don’t usually have to send existing trust documentation, Wills or Deeds of Variation to an insurance provider for analysis, but you may need to provide it if trustees of an existing trust are applying for a product.

The main points covered within the document are:

  • Trustee Duties and Investment Considerations
  • What type of trust is it?
  • Can trustees buy a bond?
  • Who is assessed for the tax on a chargeable event gain on a bond in trust?
  • How can a trust be brought to an end?

Trustee Duties and Investment Considerations

Section 1 of the document highlights important information about trustee duties and investment considerations as well as further reading suggestions.

What type of trust is it?

Section 2 of the document takes you through a series of decision trees designed to help you determine what type of trust it is.

Can trustees buy a bond?

Section 3 of the document takes you through a series of decision trees designed to help you determine if a bond is a suitable investment vehicle for the type of trust.

Who is assessed for the tax on a chargeable event gain on a bond in trust?

Section 4 of the document takes you through a series of decision trees designed to help you determine who would be assessed for income tax when a chargeable event gain arises on a bond in trust.

How can a trust be brought to an end?

Section 5 of the document has guidelines about bringing a trust to an end.

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