A trust is the formal transfer of assets (property, shares or cash) to a select group of people, called trustees, or to a trust company. It allows individuals to protect their assets and control how they are used after they have been given away. You can set up trusts during your lifetime or in your will.
As the person who puts assets into trust, you are a ‘settlor’. The person who manages the trust is a ‘trustee’ and the ‘beneficiary’ is the person who benefits from the trust.
Trusts are useful in a variety of ways, particularly in the following circumstances:
- To protect assets from beneficiaries’ partners or creditors
- To save inheritance tax
- To protect assets from the costs of nursing care
- Where beneficiaries are too young to receive an asset straight away, are infirm or are not good with money
There are a number of different types of trust. These include:
- Interest-in-Possession Trusts
- Discretionary Trusts
- Bare Trusts
- Personal Injury Trusts
Setting up a trust offers opportunities to manage your family’s future security in a tax-efficient way, ensuring your hard-earned assets go where they are needed most. The setting up of a trust can be complicated so you need an experienced and professional team on your side.
Our specialist trusts team can also provide detailed information on wider inheritance tax and estate planning.
Many members of our team are accredited members of the Society of Trust & Estate Practitioners (STEP) and Solicitors for the Elderly so you know you are in safe hands. We are also ranked in important legal directories, The Legal 500 and Chambers High Net Worth.