A Trust is a legal entity, established by an individual either during their lifetime, set up within a Will to take effect upon death only, implied by operation of law or imposed by a Court.
The client, looking to protect assets during their lifetime, wishing to protect beneficiaries of the intended trust, retain control over assets placed into trust for the benefit of family members, wishing to reduce tax and possibly avoid Probate costs may well find that a Trust is the ideal solution to a perceived problem or concern
The creator of the trust is known as the ‘Settlor’ and the recipients of the trust are known as the ‘Beneficiaries’. The Trust is administered and run by ‘Trustees’ – the Trustee can often include the Settlor.
Trusts Lawyers London
Our team of expert trust lawyers can provide clear, comprehensive advice and guidance when it come to setting up and running a trust. Get in touch with our team today on 0151 236 5000 or complete our online contact form for more information.
What are the most common types of Trust?
The Settlor declares that they hold Property A on trust for the Beneficiary. This trust is common when an adult wishes to declare they hold land for a minor beneficiary (who cannot hold legal title until they reach the age of 18 years). Alternatively, a couple buying a house and contributing unequally to the purchase price may wish to record officially that they hold the property upon a 75/25 basis and provide an additional mechanism to reflect future improvement costs outlaid by one or other co-owner.
The Settlor may wish to provide a source of income to a vulnerable child but does not wish them to gain access to the capital, particularly if they have an addiction and or cannot manage funds in a sensible manner. The Life Interest Trust can enable the income to be directed to the vulnerable beneficiary and upon their eventual death the capital can be passed to the ultimate beneficiaries. For example, the fund to support the needs of a Settlor’s child and thereafter to the Settlor’s grandchildren
Often the actual beneficiary of the trust can be ‘unclear’. A Settlor may have a number of potential beneficiaries whose needs may be as of yet undetermined or whose needs are continually changing. An example would be a Settlor without issue who has a large number of young nephews and nieces with different financial and health needs. Rather than decide at the time the Trust is established, the Trustees can be provided with wide discretionary powers to enable them to assess the needs of any singular beneficiary from time to time
Technically a version of the Life Interest Trust discussed above, these have been marketed by unregulated advisers as the ‘answer’ to ring fencing assets against care home fees. Whilst any attempt to intentionally put assets beyond the reach of a credit is potentially subject to failure under the Insolvency Legislation, they can have their place within the overall financial planning of your affairs and may be an alternative to undertaking Lasting Powers of Attorney and Probate Applications.
These are an absolute must for any client who has received damages arising from a personal injury or medical negligence case. The PI Trust is specifically granted by legislation with a unique character – the funds are held entirely for the benefit of the claimant who brought the litigation (who is both Settlor, Trustee and Beneficiary) but are totally disregarded for any ‘means testing’ undertaken by government and local authority departments. This means the compensation and damages award cannot affect any benefits received from the DWP and cannot be taken into account in future years if you were to enter a care home.
Our Private Client Department offers fixed fees. Please refer to Table 3 within our Costs Table.
Our experienced private client solicitors can guide you through the complex process of preparing the most suitable Trust to protect assets and wealth for close relatives and future generations. Call us today on 0151 236 5000 or complete our online contact form for more information.
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"The whole experience of my dealings with the firm have been of the highest quality! Professionalism, politeness and expedition were all above and beyond"
"We would both like to thank you for your kind / personal approach to our legal matters, which given some complexities sometimes is so nice to receive. We would not have any hesitation in recommending you and indeed Gregory Abrams to any of our friends and colleagues in the future."
"If I am able to build up and sell another company, I would certainly engage GAD for the sales process again. I had never done this before, but from start of the Due Diligence and Heads of Terms to finishing with Completion, they were great. Very reasonable fees too!"
