Monday, October 15, 2012

What are the options in relation to deed updates post Bamford

During our recent master class seminars on trusts, one specific issue that was addressed related to updating family trusts after the Bamford decision and related legislation.

The post today is the first in a series of 4 posts via the following video link under the heading ‘What are the options in relation to deed updates post Bamford’. If you would like a link to the video please let me know.

As with other video posts, for those that do not have easy access to the streaming or would otherwise prefer to read the transcript, this is set out below - 

What it actually means in terms of the trust variations, we think it's one of the following three things. 

The first one, we're probably guess that most of the people we work with adopt this path, is to ‘do nothing at all’. 

Is that still the right thing to do?  The honest answer is we don’t know. 

What we do know is even within the last 6 weeks, this complete review of trusts, that has been threatened forever, has already been pushed out for another year.  So the earliest that we're going to have a new taxation regime for trusts is 2014. 

You wouldn't want to take too heavy a bet for whether that's going to be pushed back again.  I suspect there's every chance you're going to have an election before the next time around and you may well have a change of government. 

So there's a whole range of things that are going to potentially happen between now and 2014 that will push that out. 

The first one is to just do nothing.

The next post will look at this approach in more detail.

Until next week.