A trust arrangement can be invaluable in some unusual or complex family situations. Below are examples of situations where the creation of a trust can be particularly beneficial:
- Trusts to enable clients to give assets away but yet still retain control.
- Peace of mind if you wish to provide for a vulnerable beneficiary who is disabled either mentally or physically.
- Trusts to benefit a spouse or civil partner and to cover a wider class of beneficiaries including children, grandchildren and further down the family line.
- Trusts as a tax planning strategy.
The person setting up the trust is known as the settlor. If a trust is contained in the will of a settlor, the will itself will include the powers for the trust, it will also identify the class of beneficiaries and the trust assets. If the trust is contained in the will the trust will only arise on the death of the settlor.
Some people prefer to set up a trust in their lifetime by either setting up the trust and the trust is effective immediately; or by creating a pilot trust which is established with a nominal sum, with the intention that substantial assets will be added in the future. However, care needs to be taken to ensure that the settlor does not retain an interest in the trust as a beneficiary and neither should their spouse/civil partner or minor unmarried children or step children. Whether the trust is set up as a pilot trust or as an immediately effective trust, the trust deed should ensure that the parties are not entitled to an interest in the trust, as otherwise there are adverse tax implications to the settlor, particularly in respect of income tax and capital gains tax.
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We like to make our charges clear and understood. Wherever possible we offer a fixed fee. However, some types of work are unsuitable for fixed fees and where this is the case we will explain why and offer one of the following:
• Capped fee
• Conditional fee
• Hourly rate
Call or email for more information about the charges for this type of work.