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Dental Tribune UK Edition, October 25-3, 2010, No.26 Vol.4

itance tax purposes for each Trust and legacy, thereby reducing the amount of incidental inheritance tax charges. Estate Planning Trusts can provide security for the family and future generations, for exam- ple, by giving away assets into a Trust set up in your lifetime or by making a gift into a Trust upon your death. This has the effect of ring-fencing the funds for speci- fied and/or prospective Benefi- ciaries. Protective Trusts protect family funds or property from a financially vulnerable or spend- thrift child. The child would re- ceive some benefit but core funds would not be at risk. Asset Protection Trusts can be particularly helpful if you antici- pate that your assets may be ex- posed to risks including: Claims (whether actual or prospective) from your own creditors ’Forced heirship’ laws, where you may be subject to the laws of a country which dictate that on your death your property must be dealt with in a certain way. However, simply placing assets into a Trust to de- feat creditors could be unlawful and liable to be set aside. Again, careful advice needs to be taken when considering any such steps. Trusts themselves incur tax! Bear in mind that the trust is not a magic wand and tax may not vanish completely. Certain types of Trusts attract tax charg- es. The basic rate of tax applica- ble to trusts for income tax is 50 per cent on rental and savings income and 42.5 per cent on divi- dends. Advice is essential to see whether there can be any reduc- tion in the amount of tax suffered by trusts. Beware of the distinction, which is not always clear, be- tween tax avoidance and tax eva- sion. The former is legitimate estate planning carried out to pre- vent a tax from falling due in the first place. The latter is a criminal scheme disposing of tax that has already fallen due. It is wise to be aware of this when considering any attractive suggestions that promise to make your current tax liability disappear! HMRC are razor sharp in identifying any sham or artificial arrangements entered into, os- tensibly giving away property into Trust but in fact reserving for the Settlor a benefit and/or a degree of control over that property; in such an event tax will be charged according to the transaction’s true nature. The law will change to deter such arrangements. It is essential that you take proper le- gal advice before committing to any such arrangement. Who would you trust? As someone creating the Trust by giving away assets, you will need to ensure that you make the right appointment of Trustees. Trus- tees are in a fiduciary position to the Beneficiaries. They must act in good faith and with the utmost integrity, putting the interests of the Beneficiaries first at all times. As the Trust may exist for many years, you need to be assured that what was once your own capi- tal is administered properly. You need not only to make the right choice of Trustee but also to en- sure that the Trust deed is drafted with the utmost care and in an- ticipation of all reasonably fore- seeable developments. Why dispose of your assets? There are many advantages to be obtained from setting up a Trust. Why would you be interested in so doing? You have available funds from the sale of your practice. Your practice may be about to undergo restructuring, from the introduction of new partners to the acquisition of land; cross- option agreements need to be set up; you wish to protect your as- sets; you wish to make provision for your family and future gener- ations. There are, however, many pitfalls in this complex area of the law. Legal advice should be taken only from those with sufficient expertise and experience. This is not intended to be a detailed consideration of the law and advice should always be sought as to the options that might be suitable for your situa- tion. DT About the author Edward Stanley is a partner in Cohen Cramer Solicitors and heads up its pri- vate client department. His specialism extends to contentious probate and trusts. He is an affiliate member of the Society of Trust and Estate Practition- ers. Cohen Cramer provides a com- prehensive range of legal services to dentists. To contact them, call 0113 244 0597, email dental.team@cohencram- er.co.uk or visit www.cohencramer. co.uk. 19Money MattersOctober 25-31, 2010United Kingdom Edition www.thedbg.co.uk For more information and a quote contact the DBG on 0845 00 66 112 Please Note: Errors and omissions excluded. Any prices quoted are subject to VAT. The DBG reserves the right to alter or withdraw any of their services at any time without prior notice. Are you waiting to find out when the Care Quality Commission* inspect your practice? Your compliance with Clinical Governance and Patient Outcomes will be questioned with the introduction of the Care Quality Commission*, HTM 01-05 and the increase in PCT practice inspections. Would you like to know how you would fare when your practice is inspected and have the opportunity to take corrective action? The DBG Clinical Governance Assessment is the all important experience of a practice audit visit rather than the reliance on a self audit which can lead to a false sense of compliance. The assessment is designed to give you reassurance that you have fulfilled your obligations and highlight any potential problems. We will provide help and advice on the latest guidance throughout the visit. • Your premises including access, facilities, security, fire precautions, third parties and business continuity plans. • Information governance including Freedom of Information Act, manual and computerised records, Data Protection and security. • Training, documentation and certificates. • Radiography including IRR99 and IR(ME)R2000 compliance. • Cross infection and decontamination including HTM 01-05 compliance and surgery audits. • Medical emergencies including resuscitation, drugs, equipments and protocols. • Training, documentation and certificates. • Waste disposal and documentation and storage. • Practice policies and written procedures. • Clinical audit and patient outcomes including quality measures. The assessment will take approximately four hours of your Practice Manager’s time depending on the number of surgeries and we will require access to all areas of your practice. A report will be despatched to you confirming the results of our assessment. If you have an inspection imminent then we suggest that you arrange your DBG assessment at least one month before the inspection to allow you time to carry out any recommendations if required. Following the assessment you may wish to have access to the DBG Clinical Governance Package with on-line compliance manuals. The areas the DBG assesses are: Clinical Governance including Patient Quality Measures - Is your practice compliant? Have you addressed all 28 CQC outcomes? ? *England only. 20YEARSYEARS 20 9361 DBG ClinicalGov The probe 338x244.qxd:Layout 1 1/7/10 13:39 Page 1