Setting up a trust can be invaluable when it comes to managing property, money and investments. If you want to protect your assets now and in the future, our specialist trust lawyers can help.
A trust is a legal mechanism to manage or transfer property, monies or investments. They can be an excellent way of managing wealth and assets for you and your family, or anyone else you would like to benefit from those assets.
Under a trust, assets such as property, savings, shares or other investments can be placed under the control of another individual or small group, known as trustees. The trustees will then manage your assets, according to instructions you set out in the trust, even after your death, for the benefit of a third-party (the beneficiaries).
An example would be a trust fund set up to provide financial support for your children or grandchildren to attend higher education. Money could be placed in a trust, which would then be managed by an appointed person or persons and released specifically to pay tuition or maintenance fees for university.
Beneficiaries have a right to benefit from the trust assets or income but have no right to an ownership of those assets.
Why is setting up a trust important?
Trusts can be a very useful way of managing wealth and assets for the benefit of you and your loved ones and can ensure that your assets continue to be used in the way you wish even after your death.
They can be created for various reasons, some examples of which are set out below:
to control, protect and preserve family assets for future generations
as part of a tax planning exercise, to mitigate Inheritance Tax
when someone is too young to handle their affairs
when someone cannot handle their affairs because they are incapacitated
when someone receives compensation due to a personal injury claim
to pass on assets while you are 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)
Everyone’s financial situation is different, and our expert trust solicitors will work closely with you to ensure that your trust suits you, tailoring a bespoke agreement for your needs.
To start setting up your trust, or for more information, our solicitors are here to answer your questions. Call us now on freephone 0330 041 5869.
How to set up a trust
When thinking about setting up a trust, you’ll first need to decide upon a few key details concerning how the trust should be managed. This should include:
The assets you wish to put into the trust
Who should be appointed as a trustee (or trustees)
Who should benefit from the trust (the beneficiaries)
How the trustees should manage the assets
How the benefits of the trust should be distributed to and used by the beneficiaries
These details will then be contained within a document known as a declaration of trust. It is always best to seek legal advice before drafting a declaration of trust as trust law can be complex, and it is crucial to ensure the document reflects your intentions.
Our experienced trust lawyers can advise you on the decisions you need to make and how to ensure this best reflect your wishes now and in the future.
Trusts may seem complicated but can be extremely useful. Prior to creating a trust, you should seek professional advice as it may be that the type of trust you believe you require is not the most efficient for your personal circumstances. Several of our solicitors are STEP qualified and as such, have additional expertise in this area.
In considering a trust, we can advise on the role of the Trustee, and the matters to consider when selecting Trustees, how a Trust is administered and what the tax implications will be. Our trust solicitors are specialists and are here to answer any questions you have. Our team are ready to offer their expert advice, call us now on 0330 041 5869 or contact us online today.
We also offer a variety of fixed fee will writing services, ranging from online wills to more complex wills which may involve various assets and sit alongside trusts.
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A trust solicitor is a lawyer who specialises in setting up a trust. They can advise you on trust law, tax implications, how to resolve disputes over a trust, and handle issues with trustees such as negligence or their removal.
If you’re thinking about setting up a trust, it is important to seek experienced legal advice from the beginning. Trust law can be very complex, and a trust solicitor can help you to ensure that your trust works in the way you intend.
It is not a legal requirement to instruct a trust lawyer when setting up a trust, but it is strongly recommended. This is because trust law can be complicated and, where documentation is not worded correctly, it can lead to disputes or the mismanagement of assets.
An experienced trust lawyer can provide the legal expertise needed to ensure all that your trust is set up and managed inline with your wishes and any disputes are handled quickly and effectively. Speak to our solicitors to find out more today.
What are settlors, trustees and beneficiaries?
The terms settlor, trustee and beneficiary describe the key roles of different individuals when a trust is set up.
The ‘settlor’ is the person who sets up the trust by putting assets such as property and money into it.
A ‘trustee’ is the person appointed to manage the trust and the assets it contains. Trusts must be managed according to the instructions left by the settlor, and assets can only be used in the best interests of the beneficiaries named. A settlor can appoint themselves as a trustee.
A ‘beneficiary’ is the person who benefits from the trust; for example, they could receive a steady income from the trust assets, reside in any properties within the trust, or inherit certain assets at a particular time.
While beneficiaries can be trustees of the trust from which they benefit, it is best practice to have at least one trustee who is not a beneficiary to ensure that the trust is not managed (even incidentally) for the benefit of an individual beneficiary.
Who can be a beneficiary of a trust?
Anyone can be a beneficiary of a trust, including people who have not yet been born (for instance, children or grandchildren). Typically, a beneficiary is:
A named individual
A group or class of people (children, grandchildren, descendants)
Any other group or organisation, including charities, companies, sporting groups, and others
Very pleased with the service I received from Slater and Gordon. All actions required were carried out in a sympathetic and efficient manner. Clarification of requirements were indicated in a clear and precise detail with good communication. Mr S, Lancashire (wills, trusts & probate case)
My lawyer was very helpful at all stages of the process. She explained things clearly and was very flexible and helpful in dealing with my challenging personal circumstances. I would highly recommend. Ms G, Lancashire (wills, trusts & probate case)
I am thrilled with how fast my Grant of Probate was dealt with and how lovely everyone was. I would highly recommend their services. Mrs E, Manchester (wills, trusts & probate case)