Different types of trusts
Many trusts exist in the trust's market. Each trust created to satisfy the creator's requirements, the beneficiary's needs and the trustee's interests.
Examples of trusts that exist are:
a). Parental trusts;
b). Bare trusts;
c). interest in possession trusts;
d). discretionary trusts;
e). accumulation trusts;
f). mixed trusts;
g). settlor-interested trusts; and
h). non-resident trusts refer to, types of trusts, for more details.
Trusts are set up to serve purposes such as:
a). Protecting assets and possessions of the settlor;
b). Give a voice or empower individuals who are too young to take care of their affairs the opportunity to;
c). Empower the vulnerable or incapacitated; and
d). As a tool of passing on possessions or assets and inheritance.
When the trustees administer a trust, there are taxes and special trusts rates that they have to pay. This allows money to be collected and added to the tax system, creating a way of generating income for the whole nation. This bill is then categorised appropriately into the income tax or capital gains tax depending on the situation, circumstance or type of trust being administered, refer to "Trust's statistics" for more information on this.
Trusts statistics and the overall effect on the tax bill:
The office of the national statistics captures changes and the critical updates, values and amounts of tax that is generated into the economy on an annual basis through, recording figures and values generated through self-assessments, tax returns and yearly tax charges and revenue generated through this system. This system also contributes to the overall trusts market growth and the growth of the economy as a whole.
Jumleap Estates & Wills Planning Private Limited, confirms that nothing stated on this article constitutes advice on which you should rely. Our blog articles are for general information purposes only. Professional or specialist advice should always be sought before taking any action relating to any views, issues or matters discussed. Jumleap Estates & Wills Planning Private Limited will not be held responsible for any action taken as a result of this article.