Fixed interest trusts
Life interest trust service
Fixed interest – or “life interest” – trusts give named beneficiaries a clear, legally enforceable right to income, capital or both. That certainty can be invaluable when supporting a surviving spouse, safeguarding income for vulnerable family members, or anchoring inter-generational succession plans. At Imperium we begin by listening: we map the settlor’s objectives, evaluate the assets involved, and decide whether a fixed life interest or a flexible power-of-appointment model will achieve the desired balance of protection and control. Working with trusted legal partners, we draft or review the trust deed, ensure that trustee powers align with the Trustee Act 2000, and register the structure on HMRC’s Trust Registration Service without delay.
Once the trust is live, our in-house teams provide complete administration. We maintain detailed books, produce annual trust accounts, calculate basic-rate tax on investment income, and claim refunds or credits where appropriate. Investment policies are reviewed annually to ensure they meet yield targets without eroding capital earmarked for remaindermen. When distributions are due, we prepare trustee resolutions, beneficiary tax certificates, and real-time cash-flow forecasts so that payments land on time and without error. Beyond day-to-day compliance we monitor legislative changes and alert beneficiaries early to issues such as the proposed removal of the “standard rate band” or shifts in CGT allowances. In short, Imperium delivers a seamless service that preserves value, keeps beneficiaries informed, and lets families rely on predictable, transparent support generation after generation.
Imperium – trusted guardians
A fixed interest trust demands punctual distributions and meticulous records. We draft or review the deed, register the trust, and manage investments that balance yield with capital preservation. Accounts, tax returns and beneficiary certificates are produced on schedule, while proactive monitoring of legislative changes keeps trustees ahead of risk. Secure digital vaults and responsive advisers give families the predictability fixed beneficiaries need.
Typical client scenarios
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Widowed spouses guaranteed lifetime income, capital preserved for children.
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Disabled beneficiaries needing dependable distributions without exhausting assets.
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Charitable legacies providing fixed annual grants to named causes.
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Your questions answered
What is a fixed interest trust?
A fixed interest trust gives one or more beneficiaries an absolute right to specific income or capital. Trustees must honour that right, making these vehicles useful where certainty of benefit is important – such as providing regular income to a surviving spouse while preserving capital for children.
How are fixed interest trusts taxed?
The trust itself may pay income tax at the basic rate on investment income. Capital gains within the trust attract trust rates, and beneficiaries pay personal tax on distributions. We calculate liabilities, file returns, and advise on reliefs to reduce exposure.
Must the trust be registered?
Yes. All UK express trusts must appear on HMRC’s Trust Registration Service. We complete registration, update details when required, and handle any additional filings triggered by property purchases or disposals.
Can the terms be amended?
Amendments generally require either a deed of variation or court approval, depending on the trust instrument. We work with legal advisers to assess feasibility, draft updated clauses, and calculate any tax consequences before changes take effect
What records must trustees keep?
Trustees must maintain accounts, a record of their decisions, investment mandates, and distribution schedules for at least six years. We provide a secure digital vault, ensuring documents remain accessible and organised.
How often should assets be reviewed?
We recommend at least annual investment reviews to confirm performance against the trust’s objectives and attitude to risk. Our advisers coordinate with investment managers and update trustees on any action points arising.
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