Lee Sharpe considers some of the practical differences between a family investment company and a traditional discretionary trust.
Family investment companies (FICs) have enjoyed increasing popularity over the last few years as the comparative attractions of traditional trusts have waned. Set out below are some of the key differences between an FIC and a typical discretionary trust – the application of land (‘stamp’) taxes may of course differ in the devolved jurisdictions.
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FAMILY INVESTMENT COMPANIES |
TYPICAL DISCRETIONARY TRUSTS |
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Companies can last indefinitely. |
For new instruments from 6 April 2010, the ‘perpetuity period’ is 125 years (PAA 2009, s 5). |
