Trusts are used to manage property. There are many types of trusts with specific objectives and they are all not all taxed at the same rate. Simply put, a trust involves an individual (the Settlor) putting assets into a trust and appointing trustees to manage the trust for the benefit of potential or nominated beneficiaries or for some other stated purpose. The Settlor will usually set all of this out in a Trust Deed.
What are Trusts used for?
There are many reasons to use a trust such as:-
- asset preservation (to control and protect the value of assets)
- when a beneficiary is too young, immature or too irresponsible to handle their own affairs sensibly
- to safeguard the interests of a vulnerable or incapacitated person
- to pass on your assets during your lifetime
- to pass on your assets when you die (a ‘will trust’)
- safeguarding awards of compensation due to personal injury or medical negligence. These are often called Personal Injury Trusts.
- for estate planning purposes as trusts are treated as a separate legal entity for inheritance tax.
- to shelter the trust assets from the creditors of the Settlor and beneficiaries
After trusts have been created, the trustees will be responsible for the ongoing administration and management of the trust. This includes preparation of annual accounts and tax returns, annual reviews of the trust and investments, distributions of income and capital to beneficiaries.
Pollock Fairbridge Schiavone Solicitors can act as a trustee or be appointed to advise the trustees. This will ensure that the trust is managed efficiently and in accordance with the Trust Deed. For more information on our trustee services please contact our Stepps office or email us at email@example.com