Trusts are a way by which assets (the Trust Fund) is held by one party for the benefit of another.
A trust is created by a settlor, who transfers property to a trustee. The trustee holds that property for the trust’s beneficiaries.
Trusts can be set up for a wide range of reasons, some of which overlap with other areas of advice provided by our Wills and Probate team. They will often be suitable where you are wanting to make a gift but there is a reason not to make an outright gift.
Such reasons include to:
• Hold your assets until your children are old enough to receive them.
• Control access to assets where you are concerned that a spendthrift might waste them if they had free access.
• Control how your assets can be used after your death, for example to allow your ex-spouse to live in your house for the rest of their life but after that to ensure that it passes to your children.
• Ensure that your assets are safeguarded against being lost to your family in the event that one of your beneficiaries were obliged to make payments from assets they own, for example if they were to get divorced or go into debt.
• Allow a beneficiary who receives state benefits to receive your assets when they need them but in a way which does not affect their entitlement to benefits.
• Hold the proceeds of a Personal Injury award for the benefit of the injured party.
• Allow your assets to remain available for use by your spouse after your death, but to avoid their being at risk of their being used for care home fees in the event that you spouse has to contribute to the cost of their care.
• Take opportunities which are legitimately available to you for tax planning purposes.
Some trusts are created so that they start operating whilst you are alive. Others, which can be created in your Will, only take effect after your death.
We can advise you on your circumstances and set up suitable trusts for you, act as a trustee of your trust fund, wind up the fund once it is no longer needed and provide advice as to the tax position at these various stage
For a consultation with a member of our team to find out how we can help, call 0330 300 1103 or request a call-back.