Trusts & Taxation

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Trust Funds are not just for the extremely wealthy and can be an ideal way to help you manage your property and assets to ensure your loved ones are protected in the future.

What is a Trust Fund?

A Trust Fund, or Deed of Trust as they are sometimes called, is a private legal arrangement where the ownership of someone’s assets (which may include property, shares or cash) is transferred to a trustee to look after and use to the benefit of a third person or group of people. The trustees then become the legal owner of the assets but the trustees must at all times put the interest of the beneficiaries above their own.

Used correctly, Trusts can safeguard your family’s inheritance and protect your estate for future generations. Trusts can take effect during the lifetime of the settlor (the person setting up the Trust) or shortly after the death of the settlor (known as the 'Will Trust'). There are a wide range of different types of Trust, depending on how the benefits of the Trust Fund is to be distributed. We can offer advice on which is best for you. Different types of Trusts include:

  • Discretionary Trust
  • Bare Trust
  • Asset Protection Trust
  • Property Trust
  • Personal Injury Trust.

The Benefits of a Trust Fund

Trust Funds can be an effective way to provide for your family both now and in the future whilst ensuring that maximum use is made of the tax planning available. They are particularly useful when planning how assets should pass from one generation to another especially when family structures are complicated by divorces and second marriages. They can be used in a variety of ways which include: 

  • To support someone who is unable to manage their money, to ensure that they are looked after, even when you are no longer able to help them yourself 
  • To benefit mentally or physically handicapped beneficiaries providing them with a secure future
  • To make sure that your own money is used to look after you if you can’t look after yourself
  • Providing financial stability in the future for your loved ones by guaranteeing an income for them
  • To ensure your money and assets are passed on in the most tax efficient way and to help mitigate Inheritance Tax
  • Advance planning using your home and other assets with care home fees in mind.

Used correctly, Trusts can safeguard your family’s inheritance and protect your estate for future generations. 

Setting Up a Trust Fund

Setting up Trusts can be a complicated process. Our Trust specialists offer a personal service which is tailored to your needs. They also deal with the administration of the Trust which includes preparing annual income and capital accounts, submitting tax returns and advising the trustees on any issues that may arise in connection with the Trust. Together with our Financial Services team, we are also able to offer clients a complete wealth and estate management service.

We Work With You

For further advice and information on Trusts and Taxation please contact a member of our Private Client team who will be happy to help you.

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