Taxes will apply based on the trust fund you choose, as each type of trust is taxed differently.
See Also
In What Situation Can a Trustee Withdraw Money From a Fund?Monopolies and Trusts | Encyclopedia.comTrust Fund Distributions to Beneficiaries: Can a Trustee Withhold Money From a Beneficiary?Why the Wealthy Use TrustsFor example, in accumulation or discretionary trusts, trustees are responsible for paying tax on the income received. The first £1,000 is usually taxed at the standard rate of 20%. However, if you have more than one type of trust fund, then the £1,000 will be divided between the number of trust funds you have.
The standard tax rate if you’re within £1,000 is 20%, but once you go over this amount, the tax rate is 45% of your trust’s income.
Am I eligible to set up a trust fund?
It’s a common misconception that trust funds are just for the wealthy; anyone who has assets or possessions they wish to pass on is eligible to set up a trust fund.
