A Trust allows one person (or a group of people) to look after someone else’s assets (which could include property, money or investments) for the benefit of another person or group of people.
The person who put the assets into a Trust is called the ‘donor’, and those people who take charge of the assets are called ‘trustees’. The trustees are responsible for looking after the assets in a way that will most benefit the ‘beneficiaries’ who are named in the Trust Deed or Will.
Why set up a Trust?
People may choose to place their assets in a Trust for a variety of reasons:-
To benefit a child who is currently too young to handle their own affairs
To benefit someone who is incapacitated and can’t handle their own affairs
As part of a tax planning process
To protect assets during a divorce affecting a beneficiary under a Will
To protect against assets being used for care fees.
When can I set up a Trust?
A trust can either be set up during your lifetime, or you can set out instructions in your Will so that it is established after death.
Are there different types of Trust?
Yes. There are a huge variety of trusts to suit different situations. If you would like advice on which type of trust would best suit you, please contact us today.
If you have any further questions or would like to make an appointment, please get in touch.