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TWP Chartered Accountants highlights the importance of using trusts

Surrey-based accountancy firm TWP, is emphasising the critical role that trusts play in effective financial planning and asset protection.

The firm aims to educate individuals and businesses on the benefits of establishing trusts as part of a comprehensive financial strategy.

Trusts are legal arrangements that allow assets to be managed and protected for the benefit of specific individuals or entities. They offer a range of advantages, including tax efficiency, asset protection, and estate planning.

Trusts can be particularly beneficial in mitigating Inheritance Tax (IHT) liabilities, safeguarding assets from creditors, and ensuring that wealth is passed on according to the settlor’s wishes.

As of March 2022, the Trust Registration Service (TRS) had 198,000 trusts and estates registered, a 23 per cent increase from the previous year.

Emma Croft, Private Client Tax Manager at TWP, stated: “Trusts are an often underutilised but incredibly effective tool in financial planning. They offer a secure and flexible way to manage and protect assets for future generations. The importance of safeguarding one’s financial legacy cannot be overstated.”

“Trusts are not a one-size-fits-all solution,” said Emma. “Their utility can vary greatly depending on individual circumstances. Whether you’re contemplating stepping away from personal business ownership, considering a move to the UK with significant assets, or pondering how to provide for a vulnerable family member, trusts offer a tailored approach to meet these diverse needs.”