Our clients were the trustees of a collection of trusts. They wanted to be sure all the trusts were being administered properly, legally, and as intended by their creator. HCR Hewitsons provided expert advice and guidance in the ongoing management of the trusts, some of which were in existence for several decades.
One of the larger trusts was worth more than £3.5m and comprised multiple rental properties, cash and investments. We supported the trustees throughout the lifetime of the trust with a variety of trust-related advice. This included the sale of properties, farming queries, dealing with lease reviews and tenant issues, the appointment and retirement of trustees and tax returns.
Having served its purpose over several years, the trustees then decided the trust should be wound up and brought to a conclusion.
Our private client team worked closely with accountants and estate agents to achieve the objectives of the trustees.
The winding up of this particular settlement required complex tax calculations, including multiple claims for Agricultural Property Relief (APR). We ensured that the correct amount of tax was paid during the trust’s lifetime and on its termination. We also negotiated appropriate indemnities for the trustee clients where required. As a result of receiving the benefit of all available tax reliefs, the trust fund could be used for its intended purpose.
Catherine Ball, private client partner and chartered tax adviser specialising in trusts, said: “Our close relationship with our own specialist agricultural team allows us to truly understand trusts that include farmland and woodland and meet the needs of our clients. This, in turn, allows us to ensure maximum tax efficiency for the trust, so that its assets can be maximised for the beneficiaries.”