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Orchard Wills Types of Trust

Types of Trust and Tax Implications

Bare Trusts

With a Bare Trust each beneficiary has an immediate right to both capital and income.

Interest in Possession Trusts

With Interest in Possession Trust, beneficiaries have a right to all trust income.

Discretionary or Accumulation Trusts

Discretionary Trust Trustees choose whether to pay out trust income, Accumulation Trust Trustees re-invest income.

Mixed Trusts

Mixed Trusts combine different types of trusts.

Settlor-Interested Trusts

The 'Settlor', of a Settlor-Interested Trust, who puts assets into a trust, can continue to benefit from those assets.

Parent Trusts for Children

Special tax rules for Children's Trusts set up by parents for unmarried children below the age of 18.

Non-Resident Trusts

UK Trusts may be set up or managed by people living abroad.

Trusts for Vulnerable People

Special tax rules for Vulnerable People Trusts set up for disabled people or children who have lost a parent - calculating and claiming tax relief.

Heritage, Charitable or Business-related Trusts

Tax guidance on sinking funds, employee share schemes, heritage and maintenance trusts and others.