Trusts are an excellent way of managing and protecting assets destined for other people until such time as they are deemed responsible to do so themselves. For example, inheritance or gifted money to be received by children may be directed to a trust until they reach adulthood. Trusts can be created and added to over time, or one lump sum can be deposited and then the trust sealed.
Conditions of the trust can be as specific as you wish, it may be that certain amount is to be released to the beneficiary at specific intervals, ie annually or on predetermined birthdays. Trusts can also be for the benefit of third party organisations such as a charity or committee.
In order to create a trust there are three roles that must be allocated. The settlor is the individual that injects the assets into the trust, the trustee is the manager of the trust, and the beneficiary is the individual or organisation that will benefit from the content of the trust.
Tax planning must be carefully though over when large amounts of wealth or assets are involved via inheritance, and trusts are an excellent way to manage this. You can create and incorporate a trust within your will to begin in the event of your death if you so wish.
There are four main types of trust available:
- a bare trust, which is normally used to pass on money to children and which involves the trustees managing the trust until the children reach the age of 18, at which point they become entitled to everything held in the trust;
- an interest in possession trust, which is commonly used to ensure one beneficiary receives an income for the rest of their life, but when they die any capital in the trust passes to someone else;
- a discretionary trust, which is commonly used where the settlor is happy to allow the trustees to decide how much each beneficiary should receive based on an assessment of their respective needs at different stages of their lives; and
- a charitable trust, which can be used to make donations for various charitable purposes, including the relief of poverty or the advancement of education.
At Pengelly & Rylands solicitors in Tenterden our team of wills, trusts and probate lawyers have extensive experience in establishing trusts of all types to help people pass on their wealth in the most appropriate way.
Our trusts solicitors will:
- consider your circumstances and whether a trust may be appropriate;
- discuss the different types of trust available and recommend which one would best meet your objectives;
- set up the trust on your behalf and ensure all legal requirements are complied with;
- help you select trustees or refer you to our professional trustees team;
- explain the tax implications arising from trust arrangements;
- provide ongoing support to you and the trustees if you require it; and
- help with the restructuring of existing trusts, particularly on behalf of farming families and landed estates.
Advising individuals and families throughout Tenterden, Kent and beyond
We have offices in Tenterden, Maidstone, Tonbridge, Gravesend and Chatham where we can meet you to discuss your requirements.
We can also offer meetings at your home, or over the telephone via Skype if you have the need to travel abroad extensively.
We offer an initial 1 hour appointment to discuss your requirements from £180 inc VAT. After that we can agree funding arrangements to suit your budget.