A trust is a legal arrangement where trustees are made legally responsible for looking after assets. These assets might include:
A trust has three main parts:
- Settlor: the person making the gift to the trust
- Trustees: the person/people nominated to look after the trust
- Beneficiaries: the people who will benefit from the trust.
Why use a Trust?
Trusts can be set up for any number of different reasons. Some of the most common are:
- To control and protect family assets
- To help someone who is incapacitated or too young to handle their own affairs
- To pass on money or property while you are still alive
- To pass money or assets when you die under the terms of your will
- To reduce the estate liability to inheritance tax
- To avoid the assets in the trust having to wait for the grant of probate before distribution
- To protect the settlor’s children from the first marriage on the settlor’s second marriage.
How we can help
Trusts can be quite complicated. We can explain all the terminology and all the things you need to be aware of. Getting professional advice about setting up a trust can help prevent a lot of upset and heartache further down the line.