Essentially, a trust is vehicle for looking after assets, with a “trustee” in control of those assets, but nevertheless holding them for the benefit of other people, the “beneficiaries”. The terms of the trust are usually set out in a legal document. A trust can be set up by an individual during their lifetime or in their Will (If a trust is created by your Will it will not start to operate until after your death.
The Trustees must act in the best interests of the beneficiaries at all times and have legal obligations and duties regarding the management of the trust and its investments. . We can provide advice both about creating, and running, trusts.
Why Create a Trust?
There can be a whole variety of reasons for setting up a trust, such as:
- To provide for someone who cannot deal with money or property themselves, such as a childor a relative who has lost mental capacity.
- As part of an Inheritance Tax or Capital Gains Tax planning strategy.
- To retain control of assets after gifting them away. An example of this would be, where the owner of a family business wants his children to benefit from that business but wants to continue the decision-making for the business.
- To make provision for a child or young adult. . Apart from the fact that a minor can not legally own such property, there is often there is concern that they may not be ready for the responsibility until they are older, or that they may be vulnerable and taken advantage ofTo appoint someone to look after assets who is better qualified to deal with them, without losing the benefit of those assets.
If you are interested in setting up a trust, or would like advice about running or even ending a trust, we would be happy to help. We have the experience and expertise to provide advice to suit your particular needs.