The transparency of trusts
Even with the various benefits above, for many, the word ‘trust’ is a loaded one and conjures up images of them being the choice of tax evasion for ‘shady people in sunny places’! However, the recording regime for trusts has become more transparent in recent years.
All trusts need to be registered on HMRC’s Trust Register, which requires details of, among other things, beneficial owners and trustees. The details that must be recorded on the Trust Register, such as the beneficial ownership of trust assets, are governed by the Fifth Money Laundering Directive (5MLD), enacted on 10 January 2020, just before the UK left the EU, and consequential regulations which came into force on 6 October 2020. With this new oversight over trusts it’s worth re-considering the role they could play to secure you and your family’s future.