Trust Solicitors

Common Trust Questions

• What exactly is a trust?

  A trust is legal arrangement in which one party holds property or assets on behalf of another party. The trustee is responsible for managing the property or assets according to the terms of the trust agreement. The beneficiary is the person who benefits from the trust.

  Trusts can be created for a variety of purposes, including to provide financial security for a family, to manage property during someone’s lifetime, and to distribute assets after someone’s death. They enable income generated from protected resources – such as rent, dividends or interest on investments – to be shared appropriately among those who benefit from it.

  By placing assets in a trust, investors can continue to realize the benefits of their investments. Properties can continue to collect rent, shares offer dividends, and money still generates interest. These income streams remain available for either reinvestment into the trust or payment directly to beneficiaries.

  Besides, trusts may not be exempt from taxation, but their use can provide more advantageous tax implications for beneficiaries than those who receive income directly.

• What type of trusts are there?

  There are a number of different types of trusts that exist to fulfill an array of varied legal and
  financial objectives.

  For instance:

  – Trusts can be revocable or irrevocable. A revocable trust can be changed or terminated by the grantor at any time, while an irrevocable trust cannot be changed or terminated once it has been created.
  – Trusts can also be either living or testamentary. A living trust is one that is created during the settlor’s lifetime and takes effect immediately. A testamentary trust is one that is created by will and does not take effect until after the settlor&’s death.
  – A bare trust allows trustees to manage assets on behalf of someone else&’s benefit. The beneficiary can have peace of mind knowing they possess full control over their funds and are able to ask for them at any time.
  – Charitable trusts are mainly used as a means to minimize income tax liability while supporting favorite charities at the same time. They are a remarkable way to leave a legacy for society at large. They can be established during your lifetime or as part of an estate plan.
  – Establishing a discretionary trust allows trustees to freely distribute assets among beneficiaries while adhering to your objectives. By appointing an independent professional, you can ensure that your objectives for the trust are properly followed and any family matters will not influence its administration.
  – A life interest trust grants recipients the privilege to receive income for a specified duration or lifelong. Afterwards, whatever remains of the fund is then passed on to designated beneficiaries.
  – Non-UK domiciled individuals are able to benefit from the use of offshore trusts, which provide an efficient way to reduce taxation before moving into Britain. These financial instruments also prove advantageous in terms of protecting assets that possess a foreign element.
  -A personal injury trust is also a helpful resource in the event of an unfortunate accident. The trust ensures that the damages received are protected and not taken into account when assessing eligibility for income support.

  and more.

• Can a solicitor be appointed as a trustee?

  While your trustee may be an individual, a corporation, or a trust company. Yes, a solicitor can be appointed as a trustee too.

  Solicitors are often appointed to act as trustees due to their broad knowledge of the law and legal matters, their ability to interpret complex documents and their expertise in managing trust funds. In some cases, they might even advise on the best way to structure a trust in order to ensure that it is administered according to the wishes of the person who established it.

• What can be included in a trust?

  You can put almost any type of asset into a trust, including land and real estate property, personal property such as artwork or jewellery, financial assets such as money, stocks and shares, and life insurance policies.

  To ensure your assets are secure and allocated according to your wishes, you may opt to establish a trust while alive or incorporate it into testamentary provisions upon death.

• What is the process of setting up a trust?

  The process of setting up a involves a number of important steps that need to be taken in order to ensure the trust is legally sound and capable of providing the necessary protection for assets.

  An official document known as a declaration of trust must feature pertinent information such as trustee nominations, beneficiaries and their respective advantages deriving from this arrangement, along with desired asset administration protocols and benefit distribution systems.

  Our lawyers can help you ensure that the arrangements you make are both effective and beneficial.