Hanson trust

1. How does a Henson Trust work?
2. How much does it cost to set up a Henson Trust?
3. What happened Hanson trust?
4. What happens to a Henson Trust after 21 years?

How does a Henson Trust work?

A Henson Trust is a trust that provides the trustees with the absolute discretion to distribute income and capital from the trust to the beneficiary as they see fit. The trustees have full control as to when, if and how much income or capital is to be paid to the beneficiary.

How much does it cost to set up a Henson Trust?

The cost of setting up a Henson Trust is an issue for amounts of $100,000 or less. In these cases, an inheritance trust may make more sense. Trustees are entitled to an annual fee, which is a percentage of assets. This is typically 2% to 2.5%.

What happened Hanson trust?

In January 1996, Hanson ended its time as a diversified conglomerate by breaking itself up into four separate listed companies: Hanson plc, Imperial Tobacco, The Energy Group and Millennium Chemicals. This deal cost Lord Hanson £95 million by August 1996.

What happens to a Henson Trust after 21 years?

The 21-year rule, which applies to most personal trusts, means that a deemed disposition comes into play and the trustee has to file a return on all the property held as if he or she had sold it at fair market value. This means you are triggering, and taxed on, all the capital gains accrued over that time.