What is a trust?
A trust enables people to place assets under the control of others.
They have full responsibility to manage those assets for the benefit of whoever is chosen, according to a set of instructions. This enables:
- Future ownership and use to be controlled
- By specifying that property and other assets must be kept within the family and/or only used in particular ways. Assets may be given to charitable organisations for stipulated uses.
- Through directing how an asset including cash, shares, a house or a family business is used even after it has been sold.
- Tax to be saved
- Trusts are treated separately for tax purposes and are assessed independently for inheritance tax, capital gains tax and income tax.
- Capital to be protected
- Avoiding the loss of assets if a beneficiary has family or financial problems.
- Helping a disabled beneficiary look after property or assets.
- Providing guidance to a young or vulnerable beneficiary in looking after their inheritance.
What shall I do next?
For advice of setting up a trust please get in touch with our expert Wills, Trusts and Probate team at [email protected].
