What are Trusts?
A trust is a legal entity in its own right. One or more people (the trustees) manage money or other assets (the trust property) for the benefit of others (the beneficiaries).
What is the legal process to setting up a Trust?
The monies/assets will have been placed in the trust by the settlor (sometimes also known as the grantor or the donor).
Trusts exist separately from other entities – such as estates or companies. They are a powerful way of defending your valuable assets from legal challenges in this fast-moving modern age.
Who can be a Trustee?
To become a trustee, you must be
- Over 18 years old
- Mentally capable
- Free of bankruptcy
It is often advised to clients, to appoint an additional trustee in the event that the original trustee dies or loses the capacity to manage money or make future decisions. Our solicitors can help you decide an additional Trustee, we advise you to select a mature individual who will take their role seriously with the beneficiary’s best interests at the centre of their decision making.
Why set up a Trust?
Setting up a Trust delivers various benefits such as;
- Passes on your estate to beneficiaries without having to take out a Grant
- Reduces personal tax liability
- Offers financial support a loved one who requires guardianship from another party
- Gifts money to those who are too young to look after it.
Setting up a Trust
Receiving the right legal advice is key when you are setting up a Trust to best suit your specific needs. Our Solicitors will guide you through the process, as they break down your options and evaluate and advise the best choice for you.
It is important to note that the wording of the Trust is vital to highlight what you need it to do, this is where we come in. Our Trusts solicitors have years of experience in successfully listening to the client, evaluating their needs and drafting effective trusts.
Which Trust should I pursue?
- Interest in Possession Trusts – Interest in Possession Trusts (also known as life interest trusts) are better for people who need a steady stream of income.
- Bare trusts– Bare Trusts are often used to pass assets to young people. The assets are held in the name of a trustee.
- Personal Injury Trusts– A personal injury trust puts the compensation received into safekeeping, where it should not be taken into account for state benefit assessment purposes.
- Mixed Trusts- Mixed Trusts are a combination of elements from different trusts.
- Property Trust Wills- These contain a provision that – on your death – your share of the property can be held in trust for your children or other beneficiaries (while allowing your partner to live in the property for his/her lifetime).
- Discretionary trusts– Discretionary Trusts are often used to help people who lack the capacity to manage money for themselves
Head to our ‘Types of Trusts; which is right for me?’ page for more information on the various Trusts available you.
