What are Trusts?
Trusts are used for many different reasons, the most common of which is to transfer the benefit of assets to others without transferring the underlying ownership. There are a number of different types of trusts, and they have different tax rules. At Davisons we have the expertise and knowledge to be able to assist you with the various trusts that suit your needs and specific circumstances and work with a number of solicitors who also specialise in drafting the right legal documentation.
Should I consider setting up a Trust?
Trusts can be used for many reasons, a few of which include the following:-
To benefit your children or grandchildren whilst they are minors, whether during your lifetime or upon your death
To provide for a family member who is physically or mentally incapable of dealing with their own financial affairs
To enable your family to benefit from the assets whilst ensuring that they ultimately stay within the family
To potentially mitigate tax liabilities
How can we help you?
Trusts and how they are taxed can be very complex and costly, however at Davisons we can help you decide whether a Trust could achieve your desired outcome.
Some of the types of trust available are:-
Life Interest Trust
This trust is normally used to ensure that a partner or spouse – often from a later relationship, will not be deprived of a place to live, but ensuring that the children from a previous relationship do not lose their inheritance if the surviving spouse/civil partner is involved in a new relationship after your death.
Life Interest Trusts are normally set up on death under the terms of a Will.
Rights of Occupation Trust
These trusts are very similar to the life interest trust in that they can protect assets from creditors and from the asset being passed to someone who you do not want it to pass to. The difference is that once the right to occupy the property ends or the life tenant dies, at that stage the trust ends and the property will pass to the beneficiaries.
A Discretionary Trust is a separate legal entity into which the ownership of assets is transferred. The Trustees have the power to manage the assets and any income derived from them, with complete control over deciding when and how much to distribute to a beneficiary as and when they need it. A Discretionary Trust must have more than one potential beneficiary, and no beneficiary has a right to the income generated within the Trust.
Trusts for Minors and other Young People
These types of Trust are set up to look after monies for children until they attain the age specified for them to inherit. Until the child attains that age, the fund will be invested and the income can be applied for his/her education, maintenance and benefit.
Come and talk to us.
We are happy to discuss your needs, give examples of what you could achieve and also ensure that they are tailored to your needs and circumstances. Please feel free to give us a call on 01769 572404 or e-mail firstname.lastname@example.org.