Trusts

It is important to understand the vital role trusts can play in securing your assets, including your car collection, and ensuring their future preservation for you and your beneficiaries.

One of the key advantages of placing assets in a trust is the ability to reduce inheritance tax (IHT) liability, while also providing a clear, structured pathway for wealth transfer. A properly structured trust allows you to gift assets—such as vehicles, or other valuable collections—during your lifetime, which can significantly reduce the size of your taxable estate and the potential IHT burden upon your passing.

When assets, such as a car collection, are transferred into a trust, it is essential to note that all documentation related to the trust—including ownership, storage, maintenance, and insurance records—must be submitted directly to the trustee and not the original owner or anyone else associated with the trust. 

This ensures that the trust is legally recognised and managed independently, maintaining its intended protections and benefits.

Furthermore, while you may retain certain powers as the settlor (the person creating the trust), the assets within the trust are now under the control of the trustee, who has the fiduciary responsibility to manage them according to the terms you've set out. This can be particularly important in ensuring the future care of your collection and its legacy, with the trustee acting in the best interest of the beneficiaries.

However there have been instances where the former owner of a vehicle, which is held in trust, has taken the car to a public event. 

If an image of the original owner with the vehicle at the event circulates on social media, HMRC can use metadata from these images to trace the connection to the original owner. This could potentially result in the trust being deemed invalid, as it may be seen as evidence that the asset is still effectively under the control or ownership of the former owner, rather than being held in trust.

It is crucial to ensure that any public exposure of trust assets is managed carefully to avoid inadvertently undermining the structure and protections provided by the trust.

What we do is unique, we can manage all the areas of cars in trust, by doing so it strengthens the trust, we inform and also manage maintenance, storage and enable showcasing.

We are here to assist your Wealth Manager on how to structure and manage trusts to ensure your wealth is protected, your wishes are honoured, and your beneficiaries receive the full benefit of your planning.

We ensure the enjoyment is still achieved whilst a car is in trust.

*We do not advise and are not regulated under the FCA, we assist legal authorised representatives in these sensitive matter.