How does a Charitable Trust operate?

A Charitable Trust is run by Trustees according to the Trust deed. This is suitable for simple Trusts involving a few people in the decision-making process. Trustees are jointly and severally liable to the charity’s creditors. If the charity is more complex, then personal liability may be unattractive to the Trustees so you can establish a charity as a company limited by guarantee, whereby: Members give a small token sum guarantee; The Directors (the Trustees) control the running of the charity; and Members can also be Directors. A charitable company has to: Be registered at Companies House and at the Charity Commission; Report to the Charity Commission and to Companies House; and Comply with both charity law and company law. The Charity Commission: Charities with an annual income over £5,000 must be registered. Smaller charities need not register but will need a tax reference from HMRC to enable donors to claim Gift Aid.

Charitable Trust Solicitors | Nelsons

Expert advice on creating a Charitable Trust

Charitable Trust

Setting up a Charitable Trust, or a charitable company limited by guarantee, are ways of creating a charity so you can support your chosen cause in a tax-efficient way and leave a lasting legacy, as a Charitable Trust can run indefinitely.

At Nelsons, we have an expert team of Trust solicitors who can help you in setting up a Charitable Trust. Our team of Trust solicitors in Derby, Leicester and Nottingham is recommended by the independently-researched publication, The Legal 500, as being one of the top teams of experts in the UK.

How does a Charitable Trust operate?
A Charitable Trust is run by Trustees according to the Trust deed. This is suitable for simple Trusts involving a few people in the decision-making process. Trustees are jointly and severally liable to the charity’s creditors.

If the charity is more complex, then personal liability may be unattractive to the Trustees so you can establish a charity as a company limited by guarantee, whereby:
- Members give a small token sum guarantee;
- The Directors (the Trustees) control the running of the charity; and
- Members can also be Directors.
A charitable company has to:
- Be registered at Companies House and at the Charity Commission;
- Report to the Charity Commission and to Companies House; and
- Comply with both charity law and company law.
The Charity Commission:
- Charities with an annual income over £5,000 must be registered.
- Smaller charities need not register but will need a tax reference from HMRC to enable donors to claim Gift Aid.

Why choose Nelsons?

Recognised expertise – Our team comprises skilled solicitors with extensive experience in Trust creation and administration and are recommended by the independently-researched publication, The Legal 500.
Personalised and holistic service – We tailor our services to meet the unique requirements of each client. Additionally, we can also provide you with tailored advice on a full range of other legal services with support from our Employment Law, Corporate services, Dispute Resolution and Investment Management teams.

Testimonials…

"Nelsons...has an extensive offering, with practitioners having experience of trust administration, Court of Protection work, investment management, wills and probate..."
The Legal 500
"The legal work has been excellent and on time. A major difference between Nelsons and other major law firms we have dealt with is that they focus on a personal touch. Knowing they are there and can check up on any changes we need to make on legal issues is comforting."
The Legal 500 2023
"Nelsons...acts on matters ranging from wills and estates, lifetime and tax planning, asset protection and care fee planning, through to trust structuring, with a focus on high net-worth individuals and those with international assets."
The Legal 500 2023
"Key strengths and capabilities in my opinion are: – the ability to visit clients at home which reduced anxiety for our family – professionals who are knowledgeable, approachable and respectful..."
The Legal 500 2023
"...Clear and accurate information regarding the processes involved – Efficient delivery of paperwork, etc."
The Legal 500 2023 (Continued)

Contact us for advice concerning the creation of a Charitable Trust

To discuss how our team can help you in setting up a Trust, please call us on 0800 024 1976 or contact us via our online enquiry form for a guaranteed response.