-
trust expenses
(1) Just trying to get clarification on what constitutes trust expenses….i have attached a pdf i found somewhere….any confirmation that these are legit expenses applying to one of marks trusts…or does anyone have a schedule of trust expenses that they use or can recommend?
(2) also, just for clarification..in trust deed, it says trustee should keep proper accounting records etc in order that it could be conveniently and properly audited.. and at end of accounting year, trustee should prepare a balance sheet. However, it then says that there is no obligation to appoint any auditor……heres how i comprehend that….
It is the Trustees role to keep correct accounting records and to act with integrity to uphold and grow the trust fund and make appropriate distributions…the accounting records are for his/her and the beneficiaries information ONLY so that all parties within the trust are clear about the trusts activities. As regards accounting and disclosure to beneficieries, the Trustee can choose what works best for him/her i.e. whether to keep monthly/quarterly/ bi annual minutes and No external body/person/corporation/entity has a right to know the trusts private business. ….as long as there is no criminal activity ofcourse!…does that sound right?
(3) think I have already asked this…but expenses can be used against any so called CGT.
Final point…are there any videos/webinars on simple trust accounting methods? Or would anyone be happy to offer simple accounting strategies that they use/work for them?
Just trying to keep it simple as poss and paperwork to a minimum but with a clear comprehension of it all. Thanks for any tips.
-
3 Replies
-
If you have a private trust you don’t need any records for the public (unless you choose to give them access and therefore jurisdiction over your trust and it would stop it being a private trust in that case). So any expenses that you deem expenses are up to you. If it is something that your trust needs to purchase for its upkeep (in any way at all) and it costs the trust money, then it is an expense. No one has jurisdiction over your records except the trustees and principal of your trust, not even a court or the police (who are in the public) unless you allow them access to it and thereby literally destroying the privacy of your trust by allowing them (the public arena) access to it.
-
thanks for yr reply Morag…always appreciated…yep i get that its private and no ones business apart from the people within the trust.it is nice to hear confirmation though…and in my case its pretty simple theres not a lot of beneficieries or any other people involved, but Im just trying to get it straight in my head, coz, in the trust deed, it does say that the trustee does have obligations to keep all the records/transactions in order…not for any public office/r…..i am trying to do it in the simplest way possible…cgt is capital gains tax…if some of assets in trust accrued some.was going to write them off aginst expenses…think i saw one pdf article where if a property owed cgt on sale, mark had thrown that gain into a foundation…..but yr right this is a private trust and …cheers😍
-
-
What is a CGT?