A trust is a tool that allows you to protect assets

A trust is a tool that allows you to protect assets and provide for your loved ones, whilst retaining control over how and when your wealth is used.

Trusts are used for a variety of purposes, and as our lives, finances, and family circumstances are becoming more complex, the use of trusts has drastically increased.

Despite common belief, trusts are not only for the wealthy.

  • Trusts can be used for several different reasons, including:
  • Care fee planning;
  • Dealing with business succession;
  • Flexibility, as trusts can be adapted for different purposes and circumstances over time;
  • Inheritance Tax planning;
  • Maintaining control;
  • Privacy, as trusts are not public documents like Wills are after your death;
  • Protection for beneficiaries who may suffer from mental health conditions;

  • Protection for beneficiaries who suffer from gambling addictions, or who are irresponsible/ inexperienced with money;

  • Protection of assets for beneficiaries in blended families;

  • Providing for children; and

  • Providing for disabled or vulnerable persons.

Trusts can be created during your lifetime, or on death in your Will.

Common types of trusts include:

  • 18 – 25 trusts;
  • Bereaved Minors trusts;

  • Minors trusts;

  • Charitable trusts;

  • Disabled/ Vulnerable persons trusts;

  • Discretionary trusts;

  • Interest In Possession trusts (also known as a Life Interest trusts);

  • Personal Injury trusts and

  • Protective trusts.

How C.K Law can help

Charlotte has extensive trust experience. She is a trustee of many family trusts, Will trusts and charitable trusts, some of extremely significant values and complexity.

We can assist with all of your trust-related needs, including the following:

  • Advising on the creation of lifetime trusts or Will trusts and the different structures;

  • Preparing the Trust Deed and setting up the trust;

  • Registering trusts on the Trust Registration Service (TRS);

  • Updating the TRS when there has been a change in the trust’s circumstances;

  • Preparing ancillary trust documentation such as Deeds of Appointment and Retirement of Trustees, Deeds of Appointment for assets being distributed from trusts, Deeds of Surrender, Trustee Minutes and Resolutions;

  • Providing ad hoc advice to trustees or beneficiaries as and when it is needed;

  • Dealing with the day-to-day administration of the trust;

  • Tending to the trust’s income tax returns;

  • Preparing Inheritance Tax returns for trusts’ ten-yearly anniversary charge or exit charges;

  • Preparing trust accounts; and

  • Winding up/closing down trusts.

FAQ’s

A trust is a legal arrangement whereby someone (known as the Settlor) transfers money or assets to others (known as Trustees) to manage and look after the money and assets for the benefit of other people (known as the Beneficiaries). The terms of the trust in the Trust Deed of Will set out how the Trustees must manage the assets, when and how they can be used, and when they can be distributed.

You can put most assets into a trust, such as land and property, cash, investments, personal possessions and some digital assets.

Trusts are limited to the perpetuity period, which is set out in the Trust Deed, or in law. Trusts that are created today can have a perpetuity period of up to 125 years. The exception to this is Charitable Trusts, which can last indefinitely.

A Personal Injury trust is a trust created specifically to receive a person’s compensation made in respect of a personal injury or clinical negligence claim. By settling the compensation within the trust, the injured person can prevent the compensation from being taken into account for the purposes of means-tested benefits or during a financial assessment for care fee purposes.

A VPT is a special type of trust for the benefit of individuals who are unable to manage their affairs due to their vulnerability. This includes children under the age of 18 whose parents have died, and people who are disabled.
Whilst VPT’s have significant tax benefits, criteria must be met for the special tax status to apply to the trust.

The laws around trusts are complex, with some types of trusts having a heavy administrative burden and significant regulatory and tax obligations. If errors are made during the creation, administration, or winding up of a trust, there can be significant legal and financial consequences, together with unforeseen tax consequences. It is therefore recommended that you seek advice from a specialist, regulated trust lawyer.

Specialist Trust Advice Tailored to Your Circumstances

Contact C.K Law today to arrange a no-obligation, confidential conversation and explore the trust solutions available to you.

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If you are considering setting up a trust, or require advice as to an existing trust, please get in touch