Personal Charitable Trusts

A Personal Charitable Trust can be set up by anyone committed to long-term, tax-free, charitable giving. LCVS can act as Trustee, allowing you as the Settlor of the Trust to concentrate on supporting your chosen charities, while the administration is taken care of for you.

LCVS currently administers the capital and income of around 80 Personal Charitable Trusts, and we have well-established systems for dealing with investment, legal, taxation, charitable giving and accounting aspects.

Setting up a Personal Charitable Trust
Trust income and donations
Trust capital
Accounts and examination
The advantages

Setting up a Personal Charitable Trust

Setting up a Personal Charitable Trust is not legally complex. A Trust Deed is required, a document that forms the Trust's constitution and defines the types of causes the Trust intends to support. LCVS has a standard Trust Deed available, approved by the Charity Commission. You decide the amount of capital you will donate to start the trust. Capital or income can be added at any time by Gift Aid donation, Gift of Shares, Gift of Property, or by Legacies. As your Trust will be a charity in its own right, all methods provide tax benefits.
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Trust income and donations

A Charity Cheques Account will be opened for your Trust to collect investment income, reclaim tax and make donations to charities. The Settlor can give instructions for regular donations on an annual Distribution Form. A voucher from your Charity Cheques booklet can be used to advise us of any one-off donations. Statements of the Trust's account are sent out quarterly at the end of March, June, September and December each year, or on request.
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Trust capital

The Trust's investments are actively managed under the supervision of LCVS Investment Committee, in accordance with the Trust's reserves and investment policy. We invest and manage the capital to suit your requirements, taking into account the amount that you wish to give to charity each year. Investment Portfolio valuations are prepared quarterly and can be sent to the Settlor either quarterly, six-monthly or annually.
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Accounts and examination

We prepare a Trustee's report and accounts for each Personal Charitable Trust annually on 30 June. If the Trust's annual income or expenditure is large enough, we arrange for its accounts to be independently examined, and submitted to the Inland Revenue and Charity Commission as required.
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The advantages

Planning your charitable giving in a systematic way. You may want to maintain or develop links with particular charities, or encourage charitable work within your community.
Making long-term commitment to charitable giving possible. The Trust can continue after the death of the Settlor, with the Trustees distributing funds according to the guidelines set out in the Trust Deed. LCVS accepts binding instructions for the management of the capital and income of a Trust after the death of the Settlor, and matters will be arranged accordingly.
Providing a number of tax benefits. As the Trust is a charity in its own right, it provides exemptions from Capital Gains and Inheritance Tax. In addition, the income of a Personal Charitable Trust is not subject to Income Tax as it is applied wholly for charitable purposes.

Charity Cheques - helping individuals to give to charity

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