Family and Business Trusts
What are Trusts?
A trust is an arrangement that allows one set of individuals – the trustees to hold assets and use them for the benefit of another set of individuals – the beneficiaries.
Why set up a trust?
A trust enables you can to give assets away without losing control over the management and distribution of the trust assets.
Trusts can be used in a wide range of situations for example to:
- protect assets for a child or someone who has suffered serious injury or illness,
- to provide long-term financial assistance to a bereaved family,
- to manage a pension fund, charity, or business property
- to control family wealth through several generations.
There are many reasons why you might want to set up a trust. We can help guide you through the complex legal issues and find the solution you need.
What are the main types of trust?
There are many different names given to trust arrangements but essentially they all come within three main types.
Choosing the type of trust most suitable for your needs depends on what you are hoping to achieve.
Bare Trusts – are a simple form of trust. They are used for example, when someone e.g a parent is nominated to hold money or investments on behalf of a child. When the child reaches 18 the assets must be handed over to them.
Life Interest Trusts – are used when the intention is to give different beneficiaries separate rights to the same assets. An example would be where one beneficiary is to receive income generated by the trust assets during their lifetime and on that beneficiary’s death the capital passes to a different beneficiary.
Discretionary Trusts – are used when a lot of flexibility is required. There is usually a group or ‘class’ of beneficaries and the trustees have wide decision-making powers over when and how income and capital are distributed.
There are often complex taxation and financial implications involved in setting up a trust. We can work with you and other professionals to help you to create arrangements that will suit you and your family.
Trusts are also very useful for protecting and managing business assets.
How Can We Help?
We can assist you to set up and manage trusts to suit a variety of circumstances.
We advise on:
- rights and responsibilities of trustees and beneficiaries
- the options most suitable for your needs
- trusts and IHT planning
- winding up a trust
- disputes between trustees and beneficiaries
- variation of trusts.
Support for Trustees
We are able to provide trustees with on-going support on a retainer basis or undertake specific tasks for a fixed fee.
We also offer workshops, webinars and on-line support to help trustees understand their responsibilities and manage their duties.
Quick Guide To Trustee Duties download our Quick Guide To Trustee Duties.
Contact us for more information.