Public Trust's advice to customers following the repeal of Gift Duty announcement

Public Trust's advice to customers following the repeal of Gift Duty announcement

Whether you have an existing family trust and gifting programme in place, or are looking to set up a trust, there is some important information that you need to be aware of following the government's announcement of its decision to abolish gift duty this week.

Until the legislation is formally passed and the full impact of the change clearly understood, it is important that the establishment of trusts and gifting programmes for existing trusts are continued. Delays in establishing trusts, or not continuing with existing gifting programmes for established trusts, could delay the asset protection or estate planning benefits that the trust has been set up to offer.

We are closely monitoring the changes and will advise all our customers of any developments as they are finalised, and any necessary steps that may need to be taken to meet each customer's individual needs.

If you are a customer of Public Trust who has a trust your adviser will be in contact with you in the near future. In the meantime, to help you understand what the repeal of gift duty means to you please see a quick summary guide below.

For established trusts

For customers who have a family trust and a gifting programme of activity in place it is important to consider the following:

  • The legislation will be introduced in Parliament in late November 2010 and is intended to be in effect by 1 October 2011.
  • Until the proposed legislation is formally passed we can not be sure of the full extent of the changes or what they will mean for you. We are monitoring these and will inform you of any developments as they are finalised and any necessary actions that you may need to take.
  • Until we know more it is important to remember the original reasons for establishing your trust. Was it to protect your assets? or for estate planning? If you have an existing gifting programme in place it is important that you continue with this, as delaying could have an impact on the benefits that the trust was set up to offer you.
  • If you have any further questions or concerns about your trust please contact your adviser directly.

For new trusts

If you are looking to establish a family trust and are thinking of waiting until the legislation is passed it is important to consider the following:

  • Why did you identify a need for a trust? The reasons and associated benefits that you have identified for establishing a trust will still exist. These may include asset protection or estate planning.
  • It is important that you are aware that by delaying establishing a trust you will in turn delay the benefits the trust may offer you.
  • If you have any questions or concerns please contact your local adviser who will be able to help you.

Information on trusts on our website

Contact: Public Trust for any other queries

Phone: 0800 371 471