Trusts (sometimes called settlements) are too often considered a preserve of the wealthy and purely used as a method to save tax. We feel that a greater understanding would lead to trusts being more widely embraced.
The definition of a trust is the relationship that exists where a person or persons (trustees) hold property for the benefit of others (beneficiaries). A trust is usually created by a written document.
Our specialist team advises trustees and beneficiaries on their rights and obligations under existing trusts and advises individuals and business owners on the setting up of new trusts.
There are many good reasons for a trust being created. Some of these could be:
- The person(s) you wish to benefit are vulnerable (for instance children) and they are not capable of managing money themselves
- You wish to keep assets in the family in the event of future divorce or bankruptcy
- You may wish others to assist you in managing your own affairs as you get older, without giving away full control of assets (for instance to your children)
- You may be a business owner who wants to continue running your company whilst providing financial benefits to children or grandchildren
- You may want to preserve assets such as shares in a family company
While rarely the primary reason for setting up a trust, tax remains an important consideration and we are able to advise on the tax planning opportunities available.