Trusts.

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How we can help you with Trusts.

Trust Creation.

Trusts are an excellent way to protect the assets that you have accumulated for the benefit of your family and future generations.

We can advise you on whether or not a trust is suitable for you, the type of trust that should be used and the tax advantages of the trust.

There’s an endless number of reasons for creating a trust but here are a few:

  • passing assets to the next generation in a tax-efficient way – reducing Inheritance Tax
  • enabling a spouse or partner to benefit from assets but ensuring that they are ultimately passed on to children or grandchildren – controlling the ultimate destination of family assets
  • saving care fees – protecting assets from mean-testing assessments
  • protecting pension lump sums
  • ring-fencing inheritance so that it’s kept in the family blood-line
  • protecting agricultural and business assets
  • ensuring that a vulnerable or young person’s inheritance is looked after for their benefit
  • control over when, how much and in what circumstances a person should receive funds

Help for Trustees – you’re not alone.

People naturally feel honoured to have been chosen to act as Trustees but the level of responsibility and accountability is often a daunting task.

Trustees need to take advice on their role and responsibilities, the scope of their authority and how best to operate the trust.

We know that Trustees are often under pressure from the beneficiaries – you’ll sleep much better if the trust administration is in good order.

We’ll tailor our service to your requirements so whether you want us to advise you about a specific issue that you’re dealing with or take on the full trust administration we’ll be delighted to help.

Our Trust service includes:

  • help with setting up a trust
  • preparing Trustee resolutions
  • advising at Trustee meetings
  • preparing of Trust Accounts
  • drafting Investment Policy Statements
  • monitoring the performance of investments
  • advice on distributing income or capital assets

Ready to talk?

To make your free no-obligation enquiry now call 01884 216 106, email info@gormanlegal.co.uk or send a free Online Enquiry.

If you are not yet ready to talk, keep scrolling to read our FAQs about Trusts.

FAQs about Trusts.

A Trust is a legal arrangement for the management of money, investments or property for the benefit of specific people. If you create a trust, you decide who is in charge of the management of the assets (the trustees) and who will benefit from those assets (the beneficiaries).

The trustees are responsible for the management of the trust assets. Trusts do sometimes pay tax but it can be more tax-efficient to create a trust and for the beneficiaries to receive income or assets from the trust, rather than directly.

Call us today on 01884 216106 or use our Free Enquiry Form to find out more.

The trustees are responsible for the management of the trust.

They have wide-ranging duties and take on personal liability so that if things aren’t done correctly they are accountable to the beneficiaries for financial losses.

The extent of their duties and what they must do will vary depending on the terms of the trust and the assets held within the trust.

Trustees will need to seek legal advice about their role and responsibilities. The cost of this advice is paid for by the trust.

Call us today on 01884 216106 or use our Free Enquiry Form to find out how our experts can help.

The rights of a beneficiary will vary depending on the terms of the trust.

Sometime a beneficiary will have a fixed entitlement to income or other trust assets. In a Discretionary Trust, the trustees have wide ranging powers over who can benefit from the trust assets and to what extent.

Beneficiaries always have the right to ensure that the trustees are acting properly and carrying out the administration of the trust in accordance with their responsibilities.

Our experts can tell you what you’re entitled to and how the trustees should be carrying out their role.

Call us today on 01884 216106 or use our Free Enquiry Form.

There are many benefits to creating a trust. Here are some of them:

  • Making provision for your family in a tax-efficient way;
  • Protecting assets if your spouse remarries after your death;
  • Providing for a spouse and children from a previous relationship;
  • Protecting assets so far as possible against a beneficiary’s divorce;
  • Protecting assets for grandchildren in case of their parent’s divorce;
  • Preventing third parties from inheriting your family’s wealth;
  • Protecting a young or vulnerable beneficiary;
  • Ring-fencing assets against care fees;
  • Preventing beneficiaries from losing state benefits including help paying for care fees;
  • Protecting assets against a beneficiary’s creditors in case of bankruptcy; and
  • Preventing the misuse of assets.

To find out more, call us today on 01884 216106 or use our Free Enquiry Form.

Trusts can be used very successfully to save inheritance tax. They can allow you to make gifts in a controlled way that protects you and your family from paying unnecessary tax. They can also ensure that beneficiaries use the funds appropriately and can prevent third parties from getting hold of your family’s wealth.

You can create a trust in your Will or during your lifetime. If you create a trust during your lifetime it can save inheritance tax if you do so at least seven years before your death.

To control what happens to the trust and the assets given to it, you can appoint yourself as a trustee. Many of our clients choose to appoint us as trustees with themselves if they don’t want sole responsibility for its management.

To find out more, call us today on 01884 216106 or use our Free Enquiry Form.

You can transfer the ownership of just about everything to a trust.

Trusts often own cash held in bank accounts, shares, property, land and life insurance policies.

If you are creating a trust, you can choose who is in charge of the management of the trust (the trustees) and who can benefit from the trust (the beneficiaries). You can also decide how much power and discretion you want the trustees to have over the amounts which the beneficiaries receive from the trust and when they should receive it.

A trust can be used to protect your children’s inheritance in a number of ways.

These might include:

  • Protecting assets so far as is possible against their potential divorce;
  • Protecting assets for a young or vulnerable person;
  • Protecting assets if your spouse remarries after your death in a way that ensures your spouse’s financial needs are met but guarantees that your children will
  • ultimately inherit the assets on your spouse’s death;
  • Protecting assets against a beneficiary’s bankruptcy and their creditors;
  • Preventing the misuse of assets; and
  • Protecting against unnecessary tax.

We can help you to create a trust which ensures that the assets are properly managed for the benefit of your children.

Call us today on 01884 216106 or use our Free Enquiry Form.

A Discretionary Trust gives the trustees the power to decide how much the beneficiaries receive from the trust and when they receive it.

This gives them more flexibility so that assets can be protected if things change in the future.

It’s usual to provide the trustees with a Letter of Wishes giving them guidance on how you would like them to exercise their powers. This will help them to make decisions in accordance with your wishes.

A Lifetime Trust is a trust created by someone during their lifetime which comes into immediate effect. This is in contrast to a trust incorporated into someone’s Will (a Will Trust) which only comes into effect on their death.

To set up a Lifetime Trust, you need to sign a trust deed and transfer assets to the trust. The trust deed will need to state:

  • Who will be in charge of the management of the trust (the trustees)
  • Who can benefit from the trust (the beneficiaries)
  • Which assets will be transferred or given to the trust (the trust fund)
  • The scope of the powers given to the trustees
  • How the trust fund is to be used

Our experts can tell you about your options and will recommend the best solution for you.

Call us today on 01884 216106 or use our Free Enquiry Form.

A beneficiary can also be a trustee. It’s best to have at least one non-beneficiary trustee to reduce the risk of a conflict of interest arising. This helps to ensure that your wishes are respected and that the trust is managed in the way you intended.

We are frequently appointed by our clients to act as trustees alongside a friend or family member who may also be a beneficiary.

Call us on 01884 216106 or use our Free Enquiry Form to find out how our experts can help.

The tax treatment of a trust depends on a variety of factors including:

  • the type of trust
  • when it was created
  • the value of the assets it owns
  • the type of assets it owns

Some trusts don’t pay any tax. A trust may have to pay tax on the income generated by trust assets and on profits made on the sale or transfer of an asset from the trust. Some trusts also pay inheritance charges from time to time.

Our experts frequently advise trustees and beneficiaries on the steps they can take to save paying too much tax.

Call us today on 01884 216106 or use our Free Enquiry Form to find out how we can help.

We provide the full range of trust services, from their creation to their termination.

We routinely advise on the taxation of trusts and how they can benefit you by helping to protect you, your loved ones and your assets.

We also advise trustees and beneficiaries on the management of the trust, the scope of their powers (including bringing the trust to an end) and the legal, tax and regulatory requirements.

Call us today on 01884 216106 or use our Free Enquiry Form.

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