What is a Trust?
A Trust is a way to leave/give your assets to beneficiaries. Unlike a straightforward gift, beneficiaries under a Trust do not have control over the asset given. Many people use a Trust in conjunction with a Will to pass on their assets in a manner they feel is appropriate to a particular beneficiary.
Why would I need to include a Trust in my Will?
Trusts are set up for a variety of reasons. They can help to reduce tax and protect beneficiaries of the trust fund. Trusts can be set up both during your lifetime and on your death (a Will Trust).
When would I need a Trust?
Trusts are designed for a variety of different purposes. They are used when a person is too young (i.e. under the age of 18) or unable (i.e. due to lack of mental capacity) to manage their own affairs. Trusts can remove property and investments from your estate to reduce your inheritance tax liability.
The range of Trusts available is wide and can be tailored to meet your particular needs. People make gifts through Trusts for various reasons for example to reduce inheritance tax (IHT), to provide for children under the age of 18 or to protect vulnerable family members. It is worth consulting a solicitor before you commit to a particular type of trust.
Can anyone set up a trust?
Anyone aged over the age of 18 with the necessary mental capacity can set up a Trust. Although traditionally used to mitigate tax Trusts have a variety of purposes and are therefore not only for the wealthy.
What does a Trustee do?
Trustees (there are usually 2) are appointed by the person setting up the Trust to manage the trust fund and so ensure that the trust funds objectives are carried out. A Trustee can be a lay person or a professional such as a solicitor.
Fosters have an experienced and professional team who will be able to advise you on the process of creating a Trust and the potential taxation implications. We can also advise you and provide support if you are a Trustee for an existing Trust.
For more information on Trusts within the Wills, Trust and Probate department please follow this link to the Trusts page.