Creation and administration
A trust exists when you give assets in law to people you choose (the trustees), subject to a duty to hold for the benefit of others (the beneficiaries).
- You can set up a trust in your lifetime or in your will
- However you set up your trust, the trustees have to manage the assets for the benefit of the beneficiaries according to the terms of the will or trust deed
As well as advising on the details of setting up a trust fund, our trust solicitors can support trustees with the ongoing administration of trusts:
- We provide a safe pair of hands to over 200 trusts, several of which have assets in excess of £1 million, and to three substantial almshouse charities
- We assist trustees in setting up trust accounts and trust tax returns
There are many types of trust fund designed for specific situations, but common types are:
- Bare trusts – often used for trustees to hold assets for a child until they reach adulthood
- Life interest trusts, also known as ‘interest in possession trusts’ – allowing a ‘life tenant’ to receive income only whilst capital is preserved for others after the death of the life tenant. If set up in a will, these are referred to as Immediate Post Death Interest Trusts
- Discretionary trusts – none of the beneficiaries has a fixed right to any particular share of the trust fund but the trustees have discretion as to which beneficiary benefits and to what extent. Discretionary trusts can be used to protect your beneficiaries from unfortunate relationships, profligate lifestyles etc.
As long as you can be confident in your trustees, setting up a trust fund offers opportunities to manage your family’s future security in a tax efficient way, both during your lifetime and after your death.
- In a lifetime trust you can be a trustee and control who is appointed a trustee in the future
- Trustees can only act according to the terms of the deed
- You may choose professional trustees – we provide this service
- You should choose your trustees carefully
Our team works closely with our independent financial advisers and we can also advise on wills, probate, personal tax or on inheritance disputes.
Please contact us to see if a specialist trust solicitor can help you in setting up a trust fund.