So you’re thinking of writing or updating your Will and you’d like a person or favourite cause (not necessarily a charity?) to benefit from your worldly goods; cash, shares or property; then a Trust might be the answer. A Trust transfers the assets to a small group of people or a Trust company (the ‘Trustees’) with instructions as to how they use them to benefit someone else (the ‘beneficiary’).
You can set up a Trust to come into effect after your death (in a Will), or to function in your lifetime ( a lifetime trust). If you choose the latter you can appoint yourself as a Trustee so that you retain some control of the assets. If you are considering tax planning, this may not be the route for you as this action may negate any tax advantage.
Another reason for setting up a Trust is that it can be the ideal result in certain family situations. For example, if you wish to leave something to children or grandchildren who are currently very young, a Trust can hold the assets until they are old enough and wise enough to receive them. Not all children become capable with money and other assets when they’re eighteen.
LSUK consultants can help guide clients whose questions about trusts and how they work can be lengthy and imaginative.
Filed under: Legal Advice
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