Probate & Estate Administration
What are Trusts?
Trusts can be a tax efficient way to give away wealth and benefit people you care about, whilst still retaining control. For example, a trust might be used to control the distribution of assets to family members over time, defer a child’s inheritance past the age of eighteen or benefit someone who does not have the ability to manage their finances themselves.
Trusts can be created through a person’s Will on their death or during their lifetime. The type of trust will dictate how it is managed and the responsibilities of those appointed to look after the trust assets.
At Timbrell Law Solicitors, we offer free initial consultations to get to know your trust, your objectives and help you work out the level of support you need. This might be assisting you with a one-off task, such as a setting up your trust or changing trustees or ongoing support with your trust accounts and tax returns.
Timbrell Law Solicitors have the skills and experience to guide you through setting up and administering your trust. If you would like our support, please don't hesitate to get in touch. We are available on 01242 420744, or you can use our contact form to arrange a free callback at a time to suit you.
Frequently Asked Questions - Trusts
A trust is created whenever assets are managed by one party for the benefit of other people.
Trusts are a bit like a piggy bank, except they can hold all types of assets including cash, property, investments and even the benefit of a life policy.
There are three sets of people involved in a trust:
- The “Settlor” is the person who creates the trust and gifts the assets to the trustees to manage
- The “Trustees” are the individuals who manage the trust and its assets
- The Beneficiaries” are those individuals who can benefit from the trust assets. For example, they might have a right to live in a trust property or receive a cash distribution
It is the Settlor who decides what type of trust is created and how their gift is used to benefit others. The type of trust decides how it is taxed; we look at the most common types of trust on our Trust Creation Page.
Once the Trust is created, the Trustees are the legal owners of the trust assets and must manage them for the benefit of the beneficiaries. The terms of the trust will set out the scope of the Trustees’ powers and how they should go about using them.
Trustee duties vary depending on the type of trust created. However, there are some universal duties which include:
- taking control of the trust assets,
- familiarising yourself with terms of the trust and the powers available to manage the trust assets,
- complying with your duty of care in managing the affairs of the trust,
- ensuring that you do not put yourself in a position of conflict,
- keeping up to date trust accounts,
- where necessary, reporting any income, gain or disposals to HMRC, and
- complying with anti-money laundering regulations and the required disclosure of beneficial ownership information to HMRC.
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Still Looking For More Information?
For the latest trust news and insights, then why not read some of our related trust blog posts for further information.