However, 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’!
The transparency of trusts
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. Following the Fifth Anti-Money Laundering Directive (5MLD) which came into force in the UK on 10 January 2020, HMRC will be expanding the details to be recorded on the Trust Register, especially in relation to the beneficial ownership of trust assets, leading to even greater transparency. So with this assurance that there is no longer any clandestinity about setting up trusts, perhaps it is worth re-considering the role they could play to secure you and your family’s future?