Where a named couple (or those in a civil partnership) consists of a lower and higher rate tax player and a second property is owned, it may be advisable for a declaration of trust to be created. This states that the income for the property is to be considered to belong to the spouse that is a lower rate tax payer, so that overall, less tax is applied on the rental income.
It is generally advisable to also seek advice from an accountant when entering into such arrangements and it is also important that the Land Registry title is checked.
How does the process work?
You are invited to a meeting to discuss your wishes which we can conduct via video conferencing. We are equally happy to discuss matters over the telephone or by email. Alternatively, we can meet at our office or your home if that is more convenient for you.
We shall draft the trust deed in accordance with your requirements and send it to you with a full letter of advice. Once you are happy, it can be prepared ready for signature and the settlor and trustees will need to sign it. We are able to store trust deeds in our firm’s storage facility for safekeeping, which we do at no extra cost and we will also provide a signed photocopy for your own records.
How long is the legal process?
We normally aim to send a draft trust deed to you within a fortnight of our initial meeting but if there is particular urgency, we can prepare the document more quickly.
Is it expensive?
We are usually able to provide a fixed fee service for the drafting of most trust deeds and any consequent work, such as the transfer of assets. Please call or email email@example.com for a quotation.
What are the things people should consider before calling?
You should consider the following:
- Your financial circumstances – including the rental income of the property and income prospects.
- It would also be advisable to consider making a Will when looking at your affairs.
Why are Grant Saw the best people for the job?
We are the largest private client department in the local area and have a number of dedicated specialists in the team. As a department, we pride ourselves on providing excellent client service, with a friendly and approachable manner and we are frequently instructed by new clients based on recommendations received from our existing clients. We also hold the Law society accreditation for excellence in Wills and Probate, known as WIQS (Wills and Inheritance Quality Scheme), as well as having members of Solicitors for the Elderly and STEP in the team. These are all demonstrative of the expertise and dedication our lawyers have in making sure our clients receive the best advice possible.