A Trust Fund is a legal third party tool that allows for planning for the future. There are many different types with associated tax benefits or obligations.
A Trust Fund is a legal third party, Estate planning tool. A Trust Fund is usually set up to manage a persons's assets on behalf of them.
The settlor places their assets into the Trust Fund. Trust Funds can hold a variety of assets such as money, property or investments. The trustee is responsible for managing the Trust Fund for the beneficiaries. The beneficiary may be the same person as the settlor.
There are lots of different types of Trust Fund. A revocable Trust Fund allows the settlor to change the terms of the trust at any time they want and remove or add assets, while an irrevocable Trust Fund does not allow any change once the terms of the trust are set.
Tax on the income received from some Trust Funds might be owed via a Self Assessment. However, for some Trust Funds, all income is treated like it has been taxed at 45%. The beneficiary might be able to receive a tax refund if they do not pay the Additional Rate of tax. These Trust funds are called discretionary Trust Funds.
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