Trusts

Our experienced team of solicitors can advise and assist with the creation and management of trusts.

Often, the expression ‘put in trust’ is used and leads to the assumption that an asset is physically changed or put somewhere.  However, a trust is a legal arrangement which enables an asset or assets to be held and managed by a person(s) referred to as a trustee for the benefit of a beneficiary. 

Land, money and stocks and shares can be held on trust. 

It is possible to create a trust during life or on death by the terms of a will.  The person who creates a trust is referred to as a settlor.

A person who is appointed as a trustee has legal obligations both in law and by way of the terms of the trust deed and must manage the assets for the benefit of the beneficiary(ies).

There are many reasons why a trust might be an appropriate arrangement to: –

• clarify the shares of co-owners in a property
• mitigate Tax
• protect capital but allow income to be paid
• help vulnerable beneficiaries (for example if they are young, or unable to manage money)
• protect assets (for example if a beneficiary is divorcing)
• avoid adversely affecting means tested benefits which a beneficiary is receiving
• avoid the need to obtain Letters of Administration or a Grant of Probate.
• allow swifter access to the assets following death

Before creating a trust, it’s important to understand the implications on you, your family and in relation to tax.  The rules relating to trusts can be complex and our team will consult with you and collaborate with accountants and/or independent financial advisers to ensure that the creation of a trust best meets your needs.

Typically, we will do the following: –

• Meet with you so that you can explain your circumstances,
• Explain how and why a trust might benefit you and your family – the pros and the cons
• Identify tax and other issues which need to be considered
• Advise you as possible trustees
• Prepare the trust documents and liaise with your trustees and you to ensure they are lawfully executed
• Assist with the transfer of the relevant asset(s) into the trust

It’s also important to obtain professional advice if you are thinking about agreeing to act as a trustee so that you understand what will be required of you as otherwise, it can be daunting.

Typically, when we advise trustees, we can: –

• ensure that you are compliant with the tax rules and/or know how to obtain other specialist tax or financial advice
• assist with the preparation of trust accounts,
• explain how to administer the trust and avoid personal liability
• your obligations to communicate with beneficiaries
• how to wind up a trust

We often charge on a fixed fee basis for advising on trusts and preparing documents.  However, once we have had the opportunity to discuss your situation with you and identify your needs, we will provide you with a fee estimate and advise you of the next steps.