Right, we've covered what trusts are and a little bit about how they work.

Last week we looked at just a couple of examples about how they can enable you to direct money

to whom you want when you want.

Today we've got to talk about tax.

Oh do we have to? Surely there's more exciting things to talk about than tax.

Well of course there are more exciting things to talk about than tax. Well of course there are more exciting

things to talk about but it is important so let's grit our teeth and man up and

see if we can get through it. It's not going to be that long actually. So let's put five

minutes on the clock down here. Say a quick thank you to my friends at 7 Investment Management

for continuing to sponsor the show,

and let's crack on.

Remember last week, or possibly the week before,

I said that a trust is its own tax and legal entity. Remember that? Well that means that the trust pays tax. It does a tax return and the trustees are responsible for assessing and paying the tax to the revenue.

It also means that just as if you were to give money to say your child or to another party,

whatever, there is tax implications potentially of doing so and it's exactly

the same in a trust.

Now as far as the taxation of trusts is concerned, I'm going to massively simplify it. It's just beyond the scope of a

little five minute video here. Surprised it to say that the taxation of

trusts depends on the type of trust, its jurisdiction, you can have onshore and offshore trusts, the kind of assets it holds, the kind of assets it holds,

the beneficiaries and whether they have an absolute right to the money or not it's complicated now if you make a

gift into a trust that is either a potentially exempt transfer or a

chargeable lifetime transfer.

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