What is a Trust?
A Trust (sometimes referred to as a Trust Fund) is a vehicle for managing money or assets. The person who sets up the Trust is the settlor and they appoint a Trustee to be in charge of the Trust. The person who benefits from the Trust is called the beneficiary. There can be multiple Trustees and beneficiaries. The Trustee holds the assets on behalf of the beneficiaries and manages the Trust according to the settlor’s instructions, either during their lifetime or after their death.
What are the advantages of setting up a Trust Fund?
Establishing a Trust in your Will can be extremely valuable in estate planning terms for a number of different reasons.
When it comes to protecting assets and controlling the distribution of your estate, Trusts (sometimes referred to as Trust funds) are essential and we provide a variety of solutions depending upon your objectives.
Despite changes in taxation policy in October 2007 there are still very valuable reasons for establishing Trusts in your Will.
Having certain assets ring-fenced in a Trust environment can ensure that your children are not disinherited through remarriage after your death and ensure that they are protected from subsequent divorce settlements.
Should a surviving partner become infirm and need to go into long-term care, funds in Trust would not feature in local authority means testing.
A Trust can also help you save on inheritance tax. On your death, your children benefit from the Trust fund without running the risk creating an additional Inheritance Tax burden in the future.
In addition to Will Trusts, we offer a variety of lifetime Trusts such as Discretionary Trusts (Relevant Property Trusts) and Interest in Possession Trusts. We are also able to act as a professional Trustee so that we can administer the schemes we set up for clients.
What is a Trust deed?
A Trust deed is the legal document which appoints the Trustees and sets out the terms of the Trust, who the beneficiaries are and what the Trust property is.
Just Wills & Legal Services can advise on the different types of Trust and advise on which type of Trust may best fit your circumstances. Whether online or in the comfort of your own home our professional consultants can help. To speak to one of our team contact us today.
Different types of Trusts
Some of the Trusts on which we can advise and which may be suited to your circumstances are:
An Asset Protection Trust is a specialist Trust set up to safeguard your home and other assets, which protects them from being sold against your wishes.
With an Asset Protection Trust, you retain control over the things you value and whilst still enjoying all the benefits they provide you for the rest of your life.
You can access the capital at any time and you can receive an income from the Trust.
An Asset Protection Trust is fully reversible. You are free to change your mind whenever you choose and put things back just the way they were before (subject to fees).
To find out more about Asset Protection Trusts, please click here
A Property Protection Trust is a Trust where the main asset is a property or a share of a property. It is usually set up to allow a current occupant to continue living in a property whilst preserving the capital value of the property for other beneficiaries, for example children.
The Trust is written into a Will and becomes effective upon the death of the first person.
An example of when a Property Protection Trust can be useful is when the settlor wishes for the property to eventually transfer to their children from a previous marriage whilst also ensuring that their new spouse can continue to live in the property during their lifetime.
A Property Trust is a life interest Trust. The beneficiary has an interest in the Trust asset (in this case the property) and can continue living in the property during their lifetime but without actually owning it.
To find out more about Property Protection Trusts, please click here
You may wish to leave assets to your spouse, civil partner or children in your Will, or you may want to make the assets available to your family members while you’re still alive. One way in which you can do this is to set up a Family Trust.
A Family Trust can be useful if you want to pass assets onto your child or children but you do not want them to receive the assets until they are older. The Trust assets will not pass to the child or children until they have reached the age specified in the Trust. This is often 18 or 21.
Another instance in which you may want to set up a Family Trust is if you want your assets to eventually pass onto your children but you also want your spouse or civil partner to be able to benefit from the assets during their lifetime.
To find out more about Family Trusts, please click here
Just Wills & Legal Services can advise on which Trust is most appropriate for you.
How much does it cost to set up a Trust?
The cost of setting up a Trust Fund will depend on the type of Trust as well as its complexity. Once we have assessed your individual requirements, we can give you an estimate of the cost involved.
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