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Accounting For Trusts

Comprehensive Trust Accounting Services

Trusts are powerful tools not just for the ultra-wealthy. They help safeguard assets, deliver tax efficiency, and ensure your wishes for future generations are respected. As specialist trust accountants, we deliver comprehensive trust accounting and tax services tailored to your needs.

Professional guidance and adherence to regulations are essential in trust planning and financial planning. This article aims to provide foundational knowledge to help you understand the importance of trusts, the standards followed by trust and estate practitioners, and how to implement effective trust strategies within your overall financial plan.

When Trustees Might Need Trust Accountants?

You may benefit from trust accounting services when you need to establish a trust during your lifetime or upon death, depending on your estate planning needs:

  • Establish a discretionary trust or variant thereof
  • Create an accumulation & maintenance trust for children
  • Set up an interest in possession trust
  • Set up a bare trust to hold assets on behalf of beneficiaries, such as children, where the beneficiary has immediate rights to the assets upon reaching adulthood
  • Set up an interest in possession trust (also known as a possession trust), which provides beneficiaries with immediate access to trust income during their lifetime
  • Use a trust for estate planning, asset protection or succession, including facilitating the transfer of assets upon death
  • Need to manage or restructure existing trusts

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    For example, trust assets can be distributed to beneficiaries in different ways, such as providing income during a beneficiary’s lifetime or transferring capital after death. Other examples include using bare trusts for minors or possession trusts for providing income from rental properties.

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    Our Trust Accounting & Tax Services

    We support trustees, settlors, and beneficiaries with:

    • Preparing trust accounts (annual financial statements), including the duty and responsibilities of trustees to prepare trust accounts and maintain accurate records of all transactions, payments, and expenses related to the trust fund. Trustees must ensure that all trust fund transactions, such as payments to beneficiaries and expenses, are correctly documented and that trust income is distributed and paid according to the trust deed and the settlor’s wishes.
    • Assisting trustees in the preparation and documentation of trust accounts, ensuring all payments and distributions are correctly recorded and fulfilled, and that beneficiaries who are entitled to trust income or capital receive their payments promptly and all reporting requirements are met.
    • Income tax compliance, including trust self-assessment returns, and advising on inheritance tax, other taxes, and the implications for estates, companies, and beneficiaries, including spouses and civil partners. We help ensure that assets placed in trust are no longer subject to inheritance tax as part of the estate, where appropriate.
    • Capital gains calculations on trust disposals, including the correct recording of all relevant transactions and expenses.
    • Advise on reliefs, allowances and tax planning for the trust, including assisting with strategies to control and decide how assets are managed, distributed, and paid, exercising trustee discretion in line with the settlor’s intentions.
    • Trust registration, filings and interaction with HMRC, including the requirement to register UK express trusts with the appropriate authorities, keep accurate and up-to-date records, and maintain access to all necessary documentation for legal and tax compliance.
    • Ongoing bookkeeping, compliance, and administration, supporting trustees in fulfilling their responsibilities and duty to maintain trust accounts, document all transactions, and comply with professional standards such as those from STEP.
    • Act as professional trustees or collaborate with your chosen trustees, providing guidance on the control and management of trust assets, and supporting executors in accessing and managing trust assets after death to ensure all legal and tax obligations are fulfilled.
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    Why Us Specialist Trust Accountants?

    • Expertise & compliance: Trust accounting requires deep knowledge of trust law and tax rules our team ensures accuracy and compliance.
    • Efficiency & peace of mind: We handle all trust accounting and HMRC liaison, freeing you from administrative burdens.
    • Strategic planning: We don’t just “do the numbers” we advise on structuring and tax optimisation.
    • Independent stewardship: As a professional accountant, we can serve impartially, adding objectivity and oversight.

    There are important considerations when managing trust accounts and inheritance tax. For guidance tailored to your situation, speak to a specialist to ensure all aspects are properly addressed.

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    How It Works

    1. Initial consultation & analysis
      We review your trust deeds, beneficiary structure and financial records to understand your objectives and obligations.
    2. Tailored plan & recommendation
      We propose a trust accounting roadmap including tax, compliance and reporting strategies.
    3. Implementation & reporting
      We prepare accounts, complete tax returns, liaise with HMRC, and maintain bookkeeping records.
    4. Ongoing service & updates
      As tax law, trust legislation or your circumstances change, we update strategies and provide continuous support.

    Contact us today to discuss how our trust accounting services can support your trust arrangements, ensure compliance and optimise tax outcomes.

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    Expert Guidance for High Net Worth Individuals

    1
    Comprehensive Wealth Analysis

    A detailed review of your global assets, liabilities, and family objectives ensures every element of your estate is structured to minimise tax and protect wealth.

    2
    Advanced Tax Mitigation Strategies

    Utilising trusts, Family Investment Companies, and lifetime gifting, we help reduce exposure to Inheritance Tax (IHT), Capital Gains Tax, and other UK and international taxes.

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    3
    Tailored Succession Planning

    Custom plans ensure seamless wealth transfer to the next generation, balancing fairness, family dynamics, and long-term financial security.

    4
    Asset Protection & Risk Management

    Strategies such as Asset Protection Trusts safeguard property and investments from creditors, divorce settlements, and market volatility.

    5
    Global Estate Coordination

    For clients with cross-border assets, we provide integrated planning to manage multi-jurisdictional tax laws and ensure compliance worldwide.