Trusts are an ideal way to provide money or assets to another person without doing so in a one off gesture. There are many cases where you may feel it is more appropriate for them to receive your offering in stages, or certain amounts and trusts are the perfect way to implement this. It may also be the case that you would like to allocate your money or assets to a charity of your choice, or a certain amount to go to your grandchildren but only in the event of the death of a parent.
Three people are named and involved when it comes to trusts. The settlor is the individual who creates the trust, the trustee is the person who is authorised to manage the trust and the beneficiary is the party which will receive the content of the trust.
Tax planning must be carefully though over when large amounts of wealth or assets are involved via inheritance, and trusts are an excellent way to manage this. You can create and incorporate a trust within your will to begin in the event of your death if you so wish.
There are four main types of trust available:
- a bare trust, which is normally used to pass on money to children and which involves the trustees managing the trust until the children reach the age of 18, at which point they become entitled to everything held in the trust;
- an interest in possession trust, which is commonly used to ensure one beneficiary receives an income for the rest of their life, but when they die any capital in the trust passes to someone else;
- a discretionary trust, which is commonly used where the settlor is happy to allow the trustees to decide how much each beneficiary should receive based on an assessment of their respective needs at different stages of their lives; and
- a charitable trust, which can be used to make donations for various charitable purposes, including the relief of poverty or the advancement of education.
At Morlings solicitors in Maidstone our team of wills, trusts and probate lawyers have extensive experience in establishing trusts of all types to help people pass on their wealth in the most appropriate way.
Our trusts solicitors will:
- consider your circumstances and whether a trust may be appropriate;
- discuss the different types of trust available and recommend which one would best meet your objectives;
- set up the trust on your behalf and ensure all legal requirements are complied with;
- help you select trustees or refer you to our professional trustees team;
- explain the tax implications arising from trust arrangements;
- provide ongoing support to you and the trustees if you require it; and
- help with the restructuring of existing trusts, particularly on behalf of farming families and landed estates.
Advising individuals and families throughout Maidstone, Kent and beyond
We can also offer meetings at your home, or over the telephone via Skype if you have the need to travel abroad extensively.
An initial appointment to discuss your requirements can be arranged from £150 plus VAT. After that we can agree funding arrangements to suit your budget.