Trusts

What you need to know about Trusts What is a trust?

What is a Trust?

In simple terms a trust is an agreement (the trust deed) on how to deal with and manage the assets settled into the Trust by the Settlor for the benefit of the Beneficiaries.

Why form a trust?

Trusts are often a central feature of the financial planning of high net worth individuals and their families. The rationale behind establishing a Trust often comprises one or more of the following:

• Inheritance/ succession purposes
• Tax planning
• Asset protection
• Future wealth preservation
• Estate planning
• Social responsibility
• Providing funds for educational purposes

What practical applications are there for trusts?

Tax planning benefits are often achieved by the transfer of assets to a Trust. For example, inheritance taxes can be reduced because once an asset is transferred into a trust, there should be no further ownership changes. We can provide the necessary tax advice, often using our in-house tax advisors.

 Estate planning ensures responsible management of the Trust assets for future generations.

Trusts can make available monies for the family’s children and relatives for educational purposes, including higher education fees and living expenses during the period of study.

Are there different types of Trust?

There are a number of different trust types that we deal with, these are mainly:

• Advice on what Trust to set up
• A bespoke trust arrangement to suit your requirements
• Transparency on fees
• Expertise – We have the necessary in-house trust and tax specialists that are required to ensure the correct and successful set up and running of Trusts and Foundations.

What do I get when I purchase a Trust?

• Discretionary Trust
• Purpose Trust
• Interest in Possession Trust
• Employee Benefit Trust
• Charitable Trust