A trust is a legal arrangement whereby assets are transferred to trustees (legal owners) to maintain for the benefit of a person, or group of people known as the beneficiaries (beneficial owners). A trust can be set up either during your life or by will.
The two main types of trust are:
- Life interest trust – allows for the income or benefit to be given to a specific beneficiary during their life and then on their death the capital is distributed amongst the remainder beneficiaries.
- Discretionary trust – the income and capital of the trust is distributed at the trustees’ discretion to any of the named beneficiaries.
The benefits of a trust:
Protection of beneficiaries
Trusts can offer a means of holding assets for those individuals who are unable to manage their own affairs i.e. younger children, vulnerable or disabled beneficiaries.
Protection of assets
If you have concerns about passing assets directly to family members, a trust can be useful to ensure these assets are retained for as long as possible.
The trust document allows you to set out how the trust assets are to be dealt withand who should benefit. As a trustee you can also be involved in the day to day management of the trust.
Providing for beneficiaries in different ways
To provide for a spouse in a second marriage or partner, during their lifetime, and at the same time to protect the capital interests for children from any previous marriage.
How we can help:
The creation and administration of trusts and settlements together with general advice on inheritance tax mitigation are core parts of the activities of this department and we can advise on all aspects of these complex subjects. We can advise on inheritance tax planning directly or as part of our service when making wills or setting up trusts/settlements.
In 2017 we received the Law Society’s prestigious Excellence in Private Client Practice award for our work in this area of law.
We can provide different pricing options depending on your budget and we are happy to have an initial chat without obligation – contact us today.