Charitable Trusts

If you are committed to long-term support of a particular cause you may want to consider the setting up of a charitable trust or foundation. It does not require a complicated legal process and offers substantial tax benefits. It also allows you to focus on the support of your chosen charities while the administration is taken care of for you.

At Killik & Co we have extensive resources for dealing with the management, legal issues, taxation questions and accounting aspects involved. Our experience and expertise will ensure the straightforward set-up and smooth running of your trust, if you specify that you wish us to be the Trustees, along with the founder and any others.

Initially we will draw-up a trust deed that specifies the constitution of the trust and defines the types of causes it will support. You can then decide the amount of capital you wish to contribute to start the trust. Capital or income can be added at any time tax efficiently by Gift Aid donation, Gift of Shares, Gift of Property or by Legacies.

If shares are gifted to a charitable trust any liability to Capital Gains Tax on those shares is waived. What’s more, it is possible to offset the value of any gift, be it in cash or securities, against your taxable income, providing tax relief at your highest rate.

As the trust is a charity in its own right, it provides exemptions from capital gains and inheritance tax. In addition, the income in the main is not subject to income tax as it is applied wholly for charitable purposes.

The trust's investments are actively managed in accordance with the Trustees’ directions contained in their Investment Policy Statement, which we can assist with. We invest and manage the capital to suit your requirements, taking into account the amount that you wish to give to charity each year. Investment portfolio valuations are prepared quarterly and reports and accounts are made available annually.

For those committed to maximizing the benefits to their favourite cause, the setting up of a charitable trust or foundation offers substantial efficiencies both during and after your lifetime. Your charitable trust or foundation can continue to make charitable contributions in your name, in accordance with your written wishes, after your death. The provision of this facility in your will can also result in Inheritance Tax benefits.

* Please note that tax treatment may be subject to change in the future.