Call us on 01228 711881 Menu

Trusts

A trust is a legal arrangement whereby one or more trustees are made responsible for assets which are placed in a trust for the benefit of beneficiaries.

A trust can be an effective way of potentially mitigating or reducing the value of your estate when you die.  This means that when you die its value will not normally be counted when your Inheritance Tax (IHT) bill is worked out.

Rather than the assets being held in a trust belonging to you they belong to a trustee.  The legal duty of a trustee is to look after them for the person who will benefit from the trust in the end.  When you set up a trust you decide the rules about how it’s managed – for example, you could say that your children will gain access to the trust when they are 18.

A trust is a legal arrangement where you give cash, property or investments to someone else so they can look after them for the benefit of a third person.  So, for example, you could put some of your savings aside in a trust for your children.

There are two important roles in any trust that you should understand:

  • The trustee is the person who technically owns the assets in the trust – it’s their job to manage the trust responsibly.
  • The beneficiary is the person who the trust is set up for – and they will get the benefit of the money, property or investments.

There are several different kinds of trusts, some you can write into your Will and others you can set up now.  The right trust for you depends on your individual circumstances.

At David Allen Financial Services we can provide advice on the most suitable trust(s) for you to help mitigate any IHT liability.

For more information or to arrange an appointment contact one of our team.