All fees are subject to the addition of VAT at the rate in force when the fee becomes due.
Set-up Fee - payable when the Trust is set up
The total payment to set up a trust is £465 where the trust is being set up by one person or £475 where it is being set up by two people. These costs are inclusive of VAT. The set-up fee encompasses a one-off charge for supplying the trust deed, processing the application, regulatory compliance checks and all required correspondence. It also includes the minimum settled sum of £5 - this is the initial gift into the trust that helps set it up.
Fee for fully activating the Trust - payable when a capital sum is first paid into the Trust Fund
There is a one-off charge of £460 (including VAT) for accepting the first substantial gift into a Trust which will fully activate the Trust. Further additions to the Trust Fund do not attract any further acceptance fees.
Trust Management Fee
Annual charges are up to 1.75% (plus VAT) of the value of the funds held at the time of calculation, such charges being calculated and collected quarterly based on the fund value at the time. The fee covers the day-to-day administration and governance of the trust fund. It covers all routine communications with your loved one as well as their carers and supporters.
The standard 1.75% trust management fee is adjusted depending on the scale of the individual trust funds.
A minimum annual fee of £240+ VAT applies at all times and a separate fee schedule and process exists where physical property is to be gifted to the Trust. If you are considering placing a property into trust please contact us to discuss this.
Trust Review Fee
A £180 fee + VAT per review. Visits are typically every one to two years depending on the needs and circumstances of your loved one.
The trust review involves a meeting to create, maintain and develop the relationship between the Trustee and your loved one. The review seeks to keep the Trustee informed of your loved one's circumstances and needs so that trust funds are prioritised to make the make the maximum impact on his or her life. The review also seeks to ensure that carers and key supporters are aware of the Trust and how to contact the Trustee.
The Trustee will use its discretion in determining the frequency of reviews. Where parents have made lifetime settlements we will agree with them the schedule of visits.
Unusual Work Fee
A £45 per hour + VAT charge for any work relating to an individual Trust outside of the standard charges. This would include attending specific beneficiary meetings outside of the standard reviews and work related to any properties held in trust.
Termination of the Trust (final distribution)
This fee is based on the value of funds paid out, or transferred, payable on the final distribution of capital or upon termination of our duties to reflect the additional work involved.
The fee is 1.0% of the market value of funds where distributed sums are to one party. Also, there is a 0.2% incremental charge per additional party up to a maximum charge of 2.0%.
Third Party Fees
Taxation work
The cost of preparing individual trust tax returns is charged separately to each Trust Fund. The cost is the amount charged by the external service provider.
The annual tax return fee is 0.36% of the trust value + VAT.
In the case of a discretionary trust, there may be an additional tax charge every 10 years and when a capital distribution is made. Tax will not normally be payable if the value of the trust has never exceeded the Inheritance Tax threshold. A fee of £1000 + VAT will be charged to cover the cost of making each such return and the arrangements to pay any tax due.
At the point where the trust is fully activated (i.e. when the trust receives the first substantial capital sum beyond the initial £5) there is a one off activation compliance fee of 0.5% of the trust value subject to a minimum charge of £200 + VAT and a maximum charge of £750 + VAT.
A final tax calculation is due when the trust is finally distributed to the residuary beneficiary(ies), unless all the remaining funds pass to a charity or charities. The tax work fee is 0.6% of the final trust fund value subject to a minimum charge of £400 + VAT and a maximum charge of £2,500 + VAT.
Investment Managers' fees
Investment Managers' fees are also charged separately to each fund and are currently 1% + VAT per annum of the invested assets' market value. These fees are payable quarterly in arrears.
No additional transaction charges are made.
Please note
This fee schedule applies from 6 April 2024 and can be reviewed and changed at any time without notice.
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