Susanne White Private Client Solicitor
Opening Hours
Monday - Friday 8am - 6pm
Appointments outside of these hours are available on request
Phone
Trusts
What is a Trust?
A Trust is a legal arrangement where one person or a number of people referred to as Trustees hold and manage assets for the benefit of a person or people known as Beneficiaries. The person who creates the Trust is known as the Settlor.
A simple example of a Trust is where a grandmother (the Settlor)) wants to transfer a rental property to her grandson (the Beneficiary) during her lifetime but does not want her grandson to take ownership of the property until he reaches the age of 25. The grandmother appoints her son and daughter-in-law to be the Trustees and transfers the property into a Trust. From the date the property is placed in Trust the Settlor no longer owns this asset. In this example the grandson is not legally entitled to the property until his 25th birthday.
The types of assets typically placed in trust include:
- Money
- Houses
- Land
- Shares
- Life Insurance
- Pensions
A Trust can be set up during the Settlor’s lifetime or after death via a Will.
Why would I want to set up a Trust?
- Trusts can ensure the proper management of assets for young beneficiaries.
- Trusts can protect assets for beneficiaries who are vulnerable.
- Assets placed in Trust if done correctly will reduce the size of the Settlors estate and can reduce the amount of Inheritance Tax payable.
- Placing income producing assets such as rental property in trust can have Income Tax advantages for beneficiaries who are in a lower income tax rate band.
- Gifting property into a Trust such as the family home or farm for future generations is a way of keeping the asset within the family and can protect the asset if any difficulties within the family arise such as a marriage breakdown.
- Placing assets in Trust before going into Long Term care means the asset(s) cannot be used to fund future care. It is important to note the Local Authority may challenge this if they can demonstrate the sole purpose of doing this was to avoid care costs.
How I can assist
- Fixed Fee appointments for those considering setting up a Trust to ensure this is the best option for all parties.
- Assistance with the creation of a range of Trusts.
- Advice for Trustees in respect of their legal obligations when administering Trusts.
- Preparation of Deeds of Retirement and Deeds of Appointment of New Trustees.
- Advice on the Tax implications and Registration of Trusts with HMRC’s Trust Registration Service (TRS).
- Advice for Trustees considering winding up existing Trusts.