The use of family trusts in financial planning is in decline, says the Financial Times. The number of trusts completing tax returns has fallen by 27 per cent over the past ten years. The prime reason, says the FT, is tax. Back in 2004 the tax rate on trusts was 34 per cent - now it is 45 per cent. Moreover, since 2006 there has been a 20 per cent tax on assets being passed into a trust and a 6 per cent tax every ten years. However, 'bare trusts' escape most of these taxes and are still worthwhile, and today more people use family investment companies to achieve many of the objectives that used to be served by family trusts.