Trusts

Our Probate, Tax Planning and Trusts solicitors can provide advice and support in connection with all areas of Trust law, whether you are an existing Trustee, a beneficiary of a Trust or you are considering setting up a Trust yourself.

We have a specialist Trusts Team who act in the ongoing administration of Trusts and can also assist with the creation or termination of Trusts. They can provide tax advice to Trustees, prepare the relevant tax returns and annual accounts, and advise and assist with regulatory matters such as registration with HMRC’s Trust Registration Service.

A Trust is a way of passing the benefit of assets to an individual or group of individuals (or charities) whilst maintaining some control of them and can be used to:

Protect assets for your chosen beneficiaries
Provide for minor beneficiaries
Make provision for a vulnerable or disabled beneficiary
Mitigate tax
Protect assets for a child who is irresponsible or going through a divorce
Make provision for a spouse or partner where you have children from a previous relationship or other beneficiaries who you would ultimately like to benefit from the assets
Define your interest in a property or land

Trusts can be set up during your lifetime or within your Will, and usually fall into one of the following categories:

Bare Trusts – where the Trustees look after the assets for someone who is absolutely entitled to them
Discretionary Trusts – where there are a group of potential beneficiaries and the Trustees have the power to decide on the ultimate distribution within that group
Life Interest or Interest in Possession Trusts – where the beneficiary or beneficiaries receive the income, interest or right to benefit from the assets but cannot usually use the capital which is protected for a different beneficiary or beneficiaries
Trusts for children – where assets are held for children who have not reached the age at which they are able to receive all of the capital put aside for them
Disabled Person’s Trusts – to provide for a disabled beneficiary who will either be entitled to receive the Trust income, or will be named as the principal beneficiary of a discretionary trust during their lifetime. This type of Trust qualifies for special tax treatment provided certain conditions are met
Charitable Trusts – these are set up to provide for a charitable purpose (or purposes) and can remain in place for a significant period of time. These trusts also qualify for special tax treatment provided certain conditions are met
Personal Injury Compensation Trust – this allows compensation received as a result of an accident or injury to be disregarded for means tested benefits and may protect such funds being used to pay for care in the future.

Good Trust management is essential to ensure that the Trustees’ obligations set out by the Trust deed and by statute are met. In recent years Trusts have been subject to stricter compliance measures which can lead to severe penalties if breached. We can advise and assist Trustees with their legal obligations.

It is important to choose your Trustees carefully as they will be the legal owners of the assets whilst the Trust exists and must ensure the correct beneficiaries receive what they are entitled to.

Please contact us if you are a Trustee who needs advice about your responsibilities, a beneficiary of a Trust who has questions about your entitlement, or you would like advice about setting up or terminating a Trust.