Lawyers for Trusts
Whatever your needs, our specialist solicitors can advise you on setting up a trust, advise on trusts law, tax implications, disputes relating to trusts and issues with trustees including negligence or removal of trustees. We also represent trustees who are concerned about their legal duties.
You can talk to us in the strictest confidence and we will work with you to achieve the best results tailored for your situation.
What is a Trust?
A Trust is a legal relationship which is created (in lifetime, or on death) when a person (settlor) transfers the legal title to property or other assets to another person (trustee) to hold for the benefit of a third person (beneficiary or beneficiaries).
The key characteristic of a Trust is that it permits the separation of legal ownership and beneficial interest. The Trustees become the owners of the Trust property as far as third parties are concerned. The beneficiaries are therefore entitled to expect that the trustees will manage property for their benefit and retain value.
Reasons for setting up a trust and common types
You can create a Trust fund by setting one up for a number of reasons, including :-
- to control and protect family assets.
- when someone is too young to responsibly handle their affairs (usually under the age of 18).
- when the person creating the trust wants to benefit someone they do not believe would manage and preserve the assets themselves or because the beneficiaries are incapacitated.
- to pass on assets while you are still alive.
- to pass on assets when you die.
- tax reasons
There are various types of Trusts, which include:
- Lifetime trusts
- Will trusts
- Life interest trusts
- Discretionary trusts
- Family protection trusts
- Property trusts
We can provide assistance with the day-to day administration of your Trust, including making distributions to beneficiaries, handling requirements in relation to accounts and reviewing the strategies chosen for the investment of the assets held within the Trust.
Creating a trust in your will
Placing your assets in a Trust is an effective means for you to provide for beneficiaries of your choice and can also be a way in which you can protect various assets. Our Solicitors are highly experienced in drafting Trusts that provide you with peace of mind for the future and supplying additional security to your loved ones.
A Trust can be used to pass on your assets in the way that you wish. They can be set up in your lifetime or can be included within your Will.
Setting up a trust
Legal work involved in setting up a trust will generally include :-
- Helping clients decide what type of trust they want to set up, the reasons why and the potential benefits and drawbacks
- Deciding on the beneficiaries
- Deciding whether you want to establish very clear and detailed instructions and duties for the trustees
- Deciding what assets will be transferred into the trust
- Deciding who you will appoint as trustees
- Who you want to be the trustees
- Advising on and drafting a detailed letter of requirements, guidelines and aims of the trust.
- Drafting the trust document
- Legal transfer of assets into the trust
- For lifetime trusts, dealing with HMRC formalities
Legal advice for trustees
If you agree to be a Trustee, you have legal and financial responsibilities that require careful consideration. Your duties will include managing the assets in the Trust with a high level of care and diligence, ensuring that any decisions about assets are in the best interests of the beneficiaries. The terms of the Trust and trustees powers, duties and any restrictions on powers will differ depending on the type of trust and terms included in the Trust Deed.
We are often instructed to advise trustees on any issues, concerns or legal aspects of their role and also where disputes arise between them or with beneficiaries.