Old school or new school?

Tom Klouda and Daniel Andreca consider how to make the choice between a family trust and a family investment company

Historically, trusts have been the ‘go to’ for passing wealth between generations as they provide a well-trodden and very flexible path for separating the legal and beneficial ownership of assets. However, the potential inheritance tax charges arising on the initial funding (as explained below), combined with more stringent reporti ng requirements and increasing professional fees of dealing with these requirements, have led families to consider using alternative structures to pass down wealth between generations.