What is a Trust?

A trust is a legal arrangement where assets are held by trustees for the benefit of beneficiaries. Trusts are powerful estate planning tools that can help you protect assets, minimise taxes, provide for vulnerable beneficiaries, and maintain control over how your wealth is distributed.

When you create a trust, you transfer ownership of assets to trustees, who manage those assets according to your instructions for the benefit of your chosen beneficiaries. This separation of legal ownership (held by trustees) and beneficial ownership (enjoyed by beneficiaries) creates flexibility and protection.

Key Benefits of Trusts

• Asset protection from creditors and divorce settlements

• Inheritance tax planning and mitigation

• Protection for vulnerable beneficiaries

• Control over how and when assets are distributed

• Privacy (trusts don't go through probate)

Types of Trusts

There are many different types of trusts, each designed for specific purposes. The right trust for you depends on your circumstances, goals, and the needs of your beneficiaries.

Our Trust Services

• Comprehensive trust planning and advice

• Professional trust document preparation

• Trustee selection guidance

• Trust administration and management

• Tax planning and compliance

• Ongoing trust reviews and updates

Trust Administration

Creating a trust is just the beginning. Trusts require ongoing administration, including:

• Maintaining accurate records and accounts

• Filing tax returns and paying any taxes due

• Making distributions to beneficiaries

• Investing trust assets appropriately

• Communicating with beneficiaries

• Reviewing and updating trust arrangements

  
  

We can provide ongoing trust administration services or support your chosen trustees with professional advice and assistance.

Discretionary Trusts

Trustees have discretion over how to distribute income and capital among beneficiaries. This provides maximum flexibility and can be useful for inheritance tax planning and protecting assets from beneficiaries' creditors.

Life Interest Trusts

One beneficiary (the life tenant) receives income or use of assets during their lifetime, with the capital passing to other beneficiaries on their death. Often used to provide for a surviving spouse while protecting assets for children.

Bare Trusts

The simplest form of trust where beneficiaries have an absolute right to both capital and income. Often used for holding assets for children until they reach adulthood.

Protective Trusts

Designed to protect vulnerable beneficiaries who may not be able to manage money themselves, such as those with disabilities or addiction issues. Trustees manage assets for the beneficiary's benefit.

Property Protection Trusts

Protect your share of property from being used to pay care home fees while allowing your spouse to continue living there. Must be set up well in advance of needing care.

Charitable Trusts

Created to benefit charitable causes. Can provide tax benefits while supporting causes you care about.

Business Property Trusts

Hold business assets or shares, often used for succession planning and protecting business interests while benefiting from business property relief.

Trusts for Inheritance Tax Planning

Trusts are one of the most effective tools for inheritance tax planning. By placing assets in trust, you can potentially remove them from your estate for IHT purposes, while still maintaining some control and ensuring your beneficiaries are provided for.

Different types of trusts have different IHT implications:

• Gifts into discretionary trusts may be immediately chargeable to IHT at 20%

• Trusts may be subject to periodic charges every 10 years

• Exit charges may apply when assets leave the trust

• Bare trusts and some life interest trusts may avoid these charges

  
  

Trusts for Asset Protection

Trusts can protect assets from various threats:

• Creditors and bankruptcy (if set up before financial difficulties)

• Divorce settlements (assets in trust may not be considered matrimonial assets)

• Care home fees (property protection trusts)

• Beneficiaries' poor financial management

• Undue influence from third parties

Choosing Trustees

Selecting the right trustees is crucial. Trustees have significant responsibilities and must act in the best interests of beneficiaries. Consider:

• Trustworthiness and integrity

• Financial competence and understanding

• Availability and willingness to serve

• Impartiality between beneficiaries

• Professional trustees for complex trusts

Discuss Your Trust Needs

Contact us to explore how trusts can help you protect your assets and provide for your loved ones. We will respond within 24 hours.

What happens next?

After submitting this form, our team will review your information and contact you within 24 hours to discuss your needs in detail, and answer any questions you may have. Thank you for visiting our website.