Trusts & Lifetime Settlements
Helping you ensure the financial security of your love ones
Why should you set up a trust?
People set up trusts for a variety of reasons including:
- Minimising the burden of tax through prudent financial planning;
- Ensuring your family will not pay any more Inheritance Tax than is necessary after you die;
- Paying for education and school fees;
- Safeguarding assets on behalf of children or young people;
- For managing the assets of another who is too frail or disabled to do so themselves; and
- Giving beneficiaries access to funds (e.g., life assurance) before a Grant of Probate is issued.
What is a trust?
The basic trust was first introduced hundreds of years ago for nights who went off to war but required that their assets be looked after in their absence by a trusted associate.
When you – ‘the settlor’ – set up a trust, you are creating a legal arrangement where you relinquish legal title in some of your assets such as property or shares to a trusted third party – the ‘trustee’ – who has an obligation to look after them on behalf of a third-party – the ‘beneficiary’.
You can give specific instructions on how you wish the trust to be administered, for example when the beneficiary will be entitled to receive or ‘take possession’ of the trust assets. However, once you have placed your assets into trust, you no longer hold legal title to them and cannot benefit from them.
The ‘capital’ or ‘fund’ of the trust is comprised of whatever cash investments or land you have placed into it. The value of the capital may appreciate over time and/or it may simply generate income. The income, importantly, can be taxed in a different way depending on the type of trust involved.
Types of trust
Many different trusts are available, to suit alternative purposes and scenarios:
- Bare Trusts
- Interest in Possession Trusts
- Immediate Post-Death Interest Trust
- Trusts for Bereaved Minors
- Discretionary Trusts
- Accumulation Maintenance Trust
- Mixed Trust
- Settlor-interested Trust
- Protective Property Trust
- Home Protection Trust
- IOU Discretionary Will Trust
- Pilot Trusts
How can we help you?
If you would like to set up a trust to benefit your loved ones? We can organise a complete audit of your situation and provide the solution to fit your needs. Although we have an hourly rate, we may be able to work with you on a fixed fee basis, as this often works well for our clients.
Are you a trustee administering an ongoing family trust? At A K Gulati & Co Solicitors, we can help you, whether you are a professional or lay trustee. Our experts can advise you on the running of the trust and the detailed administration around accounts and tax returns.
Are you a beneficiary? Would you like some advice on your rights as a beneficiary?
If you would like to investigate the help we may be able to give you, do get in touch.