Discretionary trusts
Protecting wealth, preserving intent
A discretionary trust remains a flexible and robust vehicle for safeguarding family wealth, maintaining confidentiality, and providing for future generations. At Imperium, our trustee service is built upon rigorous governance, technical depth, and personal engagement, ensuring that settlors’ wishes are honoured while beneficiaries receive appropriate support.
Understanding discretionary trusts
A discretionary trust separates legal and beneficial ownership. Assets are legally held by trustees, while beneficiaries can be considered for distributions.
Imperium’s trustee offering
Formation and structuring: We can help advise on the suitability of discretionary arrangements, draft the trust deed in collaboration with legal counsel, and establish and administer related vehicles such as underlying companies where required.
Ongoing administration: As trustees, we will effectively manage the trust assets on a day-to-day basis, maintaining records, meeting the TRS (‘Trust Registration Service) requirements. If required we can also prepare annual trust accounts maintain minute books, and ensure tax filings meet HMRC deadlines.
Tax compliance: Imperium delivers comprehensive UK tax compliance, including returns for the trust, inheritance tax ten-year charges, and exit charges.
Beneficiary communication: We recognise the human dimension of fiduciary work. We are happy to prepare beneficiary statements, host family meetings, and of course we document our decisions thoroughly.
Asset stewardship: Whether the trust holds investment portfolios, property, private equity interests or high value assets, we coordinate valuation data, monitor investment mandates, and liaise with external managers in accordance with the aims of the trust.
Why choose Imperium?
- Depth of expertise: Chartered Governance and, STEP-qualified practitioners, qualified-accountants and chartered tax advisors collaborate on each mandate.
- Independence: As an independent firm, we act solely in the best interests of beneficiaries without conflicts introduced by in-house products or external shareholders.
- Personalised oversight: A dedicated trust director is always available, ensuring continuity and informed decision-making.
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Frequently asked questions
How long does it take to establish a discretionary trust?
With documents in order, formation usually completes within four to six weeks, including registration.
Can trustees be family members?
Yes, but we recommend professional trustees to manage compliance and reduce personal risk.
Are discretionary trusts still tax-efficient after recent rule changes?
They remain valuable for succession planning and asset protection, though professional guidance is crucial to navigate charges.
Must the trust be registered with HMRC?
Almost all trusts now require registration on the Trust Registration Service; Imperium handles this.
How often are distributions reviewed?
Trustees typically review annually, but discretionary powers allow interim distributions when circumstances demand.
Can a discretionary trust hold overseas assets?
Yes, subject to local regulations. Our international network coordinates compliance in multiple jurisdictions. Equally, overseas trusts can own UK assets.
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