A Trust is a legal arrangement which enables you to separate ownership of an asset from the right to use your asset or to receive its income. One or more ‘trustees’ are appointed and made legally responsible for holding and distributing the assets as set out in the agreement. These assets (which can include property, land, money, shares or even antiques) are placed in Trust for the benefit of one or more ‘beneficiaries'.
This provides an effective way to protect your assets for another institution or person and can offer a simple and effective solution to a whole range of practical problems i.e. the death of parents with young children, divorce, bankruptcy, providing for children from different marriages etc. The wishes for the Trust and its purpose are usually written in the Settlor’s (the person who sets up the Trust) Will or set out in a legal document called ‘The Trust Deed’
Usually assets are then held in Trust with instruction that they are released at a desired time, for example on the event a beneficiary reaches a certain age or on an appointed date.
There are various Trust types available and all can be taxed differently, so it is important you seek advice from a specialist. Trusts, Wills, Inheritance Tax and Estate Planning Laws are often complex and require careful advice and planning.
Setting Up A Trust Fund
There are many benefits and reasons why you may want to set up a Trust Fund, including:
- Protection and Control over Family Assets
- Financial stability for minors (e.g. your children) too young to handle their affairs and appropriately administer their assets
- To establish administration of your assets should you become unable to do so, for example through serious illness
- To help reduce certain Inheritance Taxes
- To transfer assets efficiently to your appointed beneficiaries in the event of your death
How We Can Help You
Our Wills and Probate solicitors provide straightforward, up-to-date advice. We will evaluate your situation and provide recommendations on a number of Trust Fund solutions, creating bespoke Trust Fund planning strategies that are tailored to suit you and your circumstances. As well as guiding you through the process of setting up a Trust Fund, we also provide support for trustees with the ongoing administration of Trusts.
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