Trusts

Secure your family’s assets

Do you need someone to manage money for you, perhaps to help someone after your death, or to pay for your care later on?  One way to do this is to put money into a Trust.

What is a Trust?

A Trust is a legal arrangement whereby one or more trustees are made responsible for assets, which are placed in a trust environment, for the benefit of chosen beneficiaries.  Trusts give you control over your assets and how they are distributed.  This can be an effective tool to manage your assets in your absence reducing the burden on your loved ones.

Trusts have been used for hundreds of years and can be utilised for many reasons, from supporting future generations to sheltering funds from beneficiaries who are not quite able to handle their finances yet and perhaps never will be able to do so.  In some places, tax planning has been an important factor in creating Trusts, as in some jurisdiction’s trusts have different tax treatments.

How do Trusts work?

What distinguishes Trusts from other legal arrangements is that assets are held and managed by one person or people (the trustees) for the benefit of another person or people (the beneficiaries).  The person who creates the Trust, and transfers in money or other assets, is known as the settlor.  Different kinds of assets that can be put in a trust include cash, property, shares and land.

There are many different types of Trust, each with different rules and different benefits including bare trust, interest in possession trust, discretionary trust and mixed trusts.  Get in touch with the helpful team at David Allen to discuss your options and understand which trust funds are right for you.

Setting up a Trust

Trusts are set up for a number of reasons including:

• To control and protect family assets
• When a beneficiary is too young to handle their affairs
• When someone cannot handle their affairs because they are incapacitated
• To pass on assets while a settlor is still alive
• To pass on assets when a settlor dies (a ‘Will Trust’)
• Under the rules of inheritance if someone dies without a Will

You have to choose people to be your trustees, usually family members or close friends who you know you can rely on.  Think carefully about who to ask, and make sure they’re happy to take on the responsibility.  You should have at least two trustees, but probably no more than three or four.

The legal wording of a Trust needs to be precise, so it is definitely worth getting in touch so we can help you set one up.

How we can help

Setting up a Trust can be a long and complex process and not something you should undertake without professional advice and support.  Using our specialist financial and tax Advisers will make the process much easier and give you peace of mind that the task has been carried out effectively and efficiently.

From deciding whether a Trust is appropriate for your needs, to helping you wade through the paperwork and legalities, we are here to support you every step of the way.

Speak to one of our experienced financial Advisers and find out how we can help.