A Trust is a way of passing the benefit of assets to an individual or group of individuals whilst maintaining some control of them and can be used to:
- Protect assets for your chosen beneficiaries;
- Provide for young beneficiaries;
- Make provision for a vulnerable or disabled beneficiaries;
- Mitigate tax;
- Protect assets for a child who is irresponsible or going through a divorce;
- Make provision for a spouse where you have children from a previous relationship or other beneficiaries who you would ultimately like to benefit from the assets;
- Define your interest in a property or land;
Trusts can be set up during your lifetime or within your Will and usually fall into one or more of the following categories:
- Bare Trusts – where the Trustees look after the assets for someone who is absolutely entitled to them;
- Discretionary Trusts – where there are a group of potential beneficiaries and the Trustees have the power to decide on the ultimate distribution within that group;
- Life Interest or Interest in Possession Trusts – where the beneficiary or beneficiaries receive the income, interest or right to benefit from the assets but cannot use the capital which is protected for a different beneficiary or beneficiaries;
- Accumulation and Maintenance Trusts – where assets are held for children who have not reached the age at which they are able to receive all of the capital put aside for them.
Good Trust management is essential. It is important to choose your Trustees carefully as they will be the legal owners of the assets during the period of the Trust and are responsible for making sure the correct beneficiaries receive what they are entitled to.
Please contact us if you are a Trustee who needs advice about your responsibilities, the beneficiary of a Trust who has questions about your entitlement, or you would like advice about setting up your own financial Trust.
For further details please contact:
Jenny Walker or David Watson
Tel: 01489 892101