What is a trust?
A trust is a relationship whereby an asset such as money or property for example is held by someone for the benefit of another. The relationship is detailed in a trust deed which sets out the instructions for how the asset is to be held.
When it comes to planning for the future, a trust can be an invaluable tool. It offers scope to manage your assets in a way that, for example, could benefit a child under the age of 18. Trusts are frequently used as part of basic inheritance tax planning, enabling you to take the value of your property outside of your estate without losing control of it.
Typical reasons for setting up a trust include:
- to control and protect family assets
- when someone is too young to handle their own affairs
- when someone can’t handle their affairs because they’re incapacitated
- to pass on assets while you’re still alive
- to pass on assets when you die (a ‘will trust’)
- under the rules of inheritance if someone dies without a will (in England and Wales)
Money, investments, land or buildings can all be managed by a trust and there are different types of trust available, with differing taxation rules for each of them.
The main types of trust are:
- bare trusts
- interest in possession trusts
- discretionary trusts
- accumulation trusts
- mixed trusts
- settlor-interested trusts
- non-resident trusts
Our experienced team can help with all of these trusts and make sure you make the right decision. We’ll draft a trust deed for you, which sets out how your assets are to be managed so you have complete peace of mind that what you want to happen is what actually does happen.
Contact us on the form on the right or phone us on 0114 249 6926.