Cofunds responds to adviser demand and launches three trusts
Cofunds, the UK’s leading independent platform, has launched three draft trust deeds for collectives.
The draft trusts, created by Technical Connection and settled by a QC, provide advisers with a starting point from which, following legal advice, they can set up a suitable trust for their clients’ requirements. The first three structures in the range are:
– Bare Trust
– Discretionary Gift Trust
– Discretionary Loan Trust
Cofunds is also launching a Decision Tree, available on the Cofunds website, which aims to help advisers to recommend the most appropriate type of trust for their clients taking account of their requirements for access to and control over the investment and , of course, taking account of the tax consequences of those choices.
For each draft trust there is an Adviser Guide, Investor Guide and a draft Trust Deed to ensure that advisers have all the information they need to explore the use of trusts.
The service includes a standard Trust Investment Application Form for all trusts, as well as a Trust Identity Verification form. For the Discretionary Loan Trust there is also a Loan Trust Agreement.
Verona Smith, Head of Proposition at Cofunds said: “Tax planning is an increasingly essential part of financial advice. We’ve listened to advisers and heard loud and clear that that they want us to help in this area – so we’ve worked with tax and trust specialist Technical Connection to develop the draft trusts and a Decision Tree to provide additional support. These trusts can be used to help manage capital gains tax and in inheritance tax planning, but we would strongly recommend that advisers consult legal advisers to make sure the draft trusts are suitable for their clients specific circumstances.”