Family Trusts

Often family trusts are used to make particular arrangements for capital built up over generations which is reserved for particular beneficiaries or purposes. This might be so that it is not assessed as part of the Settlor's estate. These trusts often include charities as potential beneficiaries, and are used as a basis for significant donations to an important cause.

Where such trusts are discretionary in character the tax rate on income is set at the highest level of income tax by HM Treasury. At the present time they would therefore pay tax at 45%, and this is called the 'Rate Applicable to Trusts' (RAT). Unlike personal donations, a gift from such trusts enables the receiving charity to reclaim the full extent of the tax: so that a gift of £5,500 enables a reclaim of £4,500, resulting in a direct uplift of nearly 82%.

If you have such a trust please consider including The Share Foundation as a beneficiary. The inheritance nature of our work makes this particularly appropriate, as you can help a very large number of disadvantaged young people by contributing in this way.

You will probably need to speak to your own solicitor to prepare a Deed of Addition to include The Share Foundation as a beneficiary of your trust.

Please contact Kathryn Caswell on 01296-310400 or kathryn.caswell@sharefound.org to discuss how your trust might be able to help our work.