What are trusts for?
Trusts are set up for a number of different reasons, including:
- To control and protect family assets
- To look after assets for someone who is too young
- To look after assets for a person who is incapacitated
- To pass on assets while you’re alive
- To pass on assets upon death
- To manage personal injury compensation
- Under the rules of intestacy/ if someone dies without a Will
What is a settlor?
If you set up the Trust, you are the settlor. This process is known as ‘settling’ the assets in the trust. The settlor decides how the assets can be used and who benefits from the trust.
Who can be a beneficiary?
A settlor can choose anyone to be a beneficiary. They may choose an individual person or a group of people.
A beneficiary may be:
- A named individual
- A class of people such as ‘my children’
- A charity
- A body of people such as a club or a company
How do I set up a trust?
Setting up a trust is not an easy process and the wording must be precise. This is where our experienced Trust Solicitors can provide their expertise. Several of our Solicitors are STEP qualified so can help with even the most complex of trusts.
There are various kinds of trusts and our Trust Solicitors can walk you through each.
The different types include:
- Lifetime trusts
- Life interest trusts
- Will trusts
- Compensation protection trusts
We will arrange a time to speak with you to gain a full understanding of your assets, how you would like them to be managed and distributed. All these details will be stored in a document called a ‘declaration of trust’.
FAQs
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What can you put into a trust?
You can put any assets you own into a trust.
This may include:
- Property and land- including your home and investment properties
- Personal property- including art, jewellery
- Financial assets- including money, stocks and shares
- Life insurance
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What if a trust and a will are conflicted?
A Will and a trust are separate legal documents which often work toward the same goal: to plan and manage your assets. Sharing this same goal means they often come into conflict. To ensure the documents support one another, we recommend using experienced solicitors that can identify any conflicts at the earliest opportunity and seek to rectify them.
We also recommend reviewing these documents every 5 years. This ensures if your personal circumstances change, or if there is a change is tax legislation, you trust and Will are still valid.