Trusts have been around for thousands of years and are a useful mechanism for managing wealth, safeguarding the needs of family members, and even saving tax.
A trust is an arrangement by which someone (the ‘settlor’) gives assets to individuals (the ‘trustees’) to hold for the benefit of others (the ‘beneficiaries’). Although the beneficiaries can get the benefit of the trust assets (which could be capital or income), it is the trustees who have control and make the decisions.
Trusts can be created orally but are usually written down, recording all the trustees’ powers and duties, as well as the ways in which the beneficiaries can benefit. This benefit could be a right to the income or capital, or a discretionary benefit – a mere potential to benefit (rather than an entitlement).
Whilst many trusts are created within Wills, it is often prudent to consider creating a trust during one’s lifetime. Some typical scenarios where trusts can be useful are:
• Passing assets down to later generations • Paying school or university fees • Protecting vulnerable beneficiaries who struggle to manage their money • Safeguarding assets from creditors, bankruptcy or divorce claims • Saving inheritance tax
At Legacy Law we recognise that every person’s circumstances are unique; we will work with you to create a bespoke arrangement suited to those circumstances. We are experts on all aspects of trusts and their taxation and we will work hard to ensure that you understand the terms of all documents you put in place.
For more information call Catherine on 0118 40 50 131 or email us at email@example.com.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
This cookie is installed by Google Analytics.
Set by Google to distinguish users.
Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.