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Setting up a Trust... 
Setting up a trust for your beneficiaries could become even more complicated thanks to European Union rules which come into force later this year.
Under a new EU directive, solicitors have to ensure that trusts are not used for money laundering. Therefore for the first time, a solicitor will have to perform due diligence checks on beneficiaries, typically the children or grandchildren, as well as trustees. The directive will not just make setting up trusts a high-security undertaking. The EU adopted its Third Money Laundering Directive in September 2005. It requires member states, including the UK, to put its requirements into their national laws by December 2007. The directive requires somebody setting up a trust to perform due diligence on the trustees, and on any beneficiaries who are entitled to at least 25 per cent of the trust’s assets. The due diligence would involve making sure these individuals are not using the trust for money laundering. The details of the directive’s impact are not yet clear, as the UK is not required to put the directive into its national laws until December 2007. The directive follows last year’s Budget, which cut the tax advantages of trusts. If you would like to find out more about the services that we provide, please e-mail or contact us to arrange a meeting. If you require any further information about the services that we provide or would like to review your financial planning position, please contact us |