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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16546
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a question about a discretionary will trust, no, the

Customer Question

Hi
JA: Hi. How can I help?
Customer: I have a question about a discretionary will trust
JA: Have you talked to a tax professional about this?
Customer: no
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: the trust contains a house and some cash but not an even split. We want to split the trust between 2 families. But we want to retain the house. Can we just top
Submitted: 9 days ago.
Category: Tax
Customer: replied 9 days ago.
I am a trustee on a discretionary will. I need to split the trust with with my brothers family.
The trust contains a house and cash but not in even split. Can I top up the trust with my own cash in order that my brother can effectively get a split that is the same value as the house. So that I can keep the house
Expert:  Sam replied 9 days ago.

Hi

No but you can split the trust and then pay him an amount directly from you to him (using a solictor) that equals the 50/50 split

Thanks

Sam

Customer: replied 9 days ago.
Ok thanks. And there wouldn’t be any legal implications on the trust as the beneficiaries are our children.
Customer: replied 9 days ago.
his children.
Expert:  Sam replied 9 days ago.

Hi

Yes of course there would be as the assets of the trust are not yours to dispose of for your own benefit

What were the set terms of the trust - ?

Thanks

Sam

Customer: replied 9 days ago.
We are not disposing of the assets. We are leaving them in the trust and improving the asset so we can rent it out and retain the income in the trust for our children.
Customer: replied 9 days ago.
The trust was set up out of a will. And both sets of our children are the beneficiaries.
Customer: replied 9 days ago.
The terms were fully discretionary with no set rules on how the assets were invested.
Expert:  Sam replied 9 days ago.

Hi

Then you must leave it as is you cannot  add money in as the assets and current money belong to the trust for the beneficiaries and any tax due on income earned is payable from the trust by the trustees

You might be better off seeking advise as to maybe changing the trust to one that allows a greater flexibility but also that protetcs the assets

Thanks

Sam

Customer: replied 9 days ago.
I don’t understand your answer. We are allowed to split the trust and already had advice on that.
The original question is around how we can split the trust. Is the only way to sell the house then because currently with the house it can not be evenly split?
Expert:  OleksandraC-admin replied 8 days ago.
Hello,
It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find continuing a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.
I wonder whether you're OK with to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
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Oleksandra
Customer: replied 8 days ago.
please I am happy to wait.