DISCRETIONARY TRUST

1. You must be married
2. You must own your family home with your spouse
3. Must be 'tenants in common' not 'joint tenants' (as most are)
4. Value of home must now be worth more than the current tax-free (nil-band) allowance
5. Need to Appoint a Trust Company: Examples of charges
   • A. Executer Services
     • (i) Admin fee : First 100k – 3%
                             : Next 150k – 2%
                             : Balance – 1½ %
     • (ii) Beneficiary fee @ £250 / beneficiary
   • B. Trustees services
     • (i) Establishment fee: £650
     • (ii) Admin £350 year or 1½% (min £1000) of estate
     • (iii) Withdrawal fee : 1½ % of estate
     • (iv) Closure fee £650.00
     • (v) Any other charge deemed necessary
     • (vi) All + VAT
6. Taken trust income subject to tax and annual self assessment tax returns.
7. Possible tax charges on trust @ 6% / 10 years