Reflections and reminders in Private Client Hereford on our 10-year anniversary

Reaching such a big milestone for the Hereford office is a fantastic opportunity to reflect upon our time in the Private Client team in Hereford. Not only is it a time to reflect, a 10-year anniversary can also act as a reminder when it comes to discretionary trusts.

As with many other sectors during Covid, the Private Client team had to adapt their way of working to ensure we could still meet our clients’ individual needs whilst adhering to Covid restrictions. Initially, we expected that such unprecedented times would result in less people needing our assistance. However, we actually found that support was required more than ever as people thought more urgently about protecting and preserving their assets in their wills, trusts and implementing Lasting Powers of Attorney to assist loved ones during the pandemic. This has continued post-pandemic, and we have enjoyed meeting almost all our clients in person over the past year- whether that be in our Hereford office or in the comfort of their own home.

With Covid uncertainty now behind us, economic concerns and the cost-of-living crisis lies ahead. It is difficult to foresee what may arise in the next 12 months, however we are certain that protecting assets and loved ones will continue to be at the forefront of people’s minds.

Reminder for trustees

When a discretionary trust reaches its 10-year anniversary of the date on which the trust started, the trustees have to assess whether any inheritance tax is due. This must be completed every 10 years until all the assets in the trust have been appointed to the beneficiaries.

Within six months of the anniversary, trustees will need to complete an IHT100 form and submit to HM Revenue & Customs to pay any inheritance tax due. It is therefore essential to review the trust promptly following the big 10-year anniversary – ensure your calendars are up to date!