Trusts

Trusts normally arise in one of three ways:
  • Automatically by operation of law;
  • By creation in a Will; or
  • By lifetime creation.
     

Trusts are mainly used for asset protection; they can protect family wealth for future generations and from such items as claims from former spouses or partners, claims for means testing or the children of a second spouse, or from the H M Revenue & Customs.

Creating Trusts for tax mitigation purposes gets a lot of publicity as Trusts are frequently central to the long term inheritance tax planning of a family. Against this backdrop great care is needed both in the creation and administration of trusts to ensure that they achieve their objectives and do not fall foul of any of the legislative traps that have been set for them.

Trusts come in a variety of shapes and sizes and it is important that you choose the right Trust to ensure that your objectives are met. Below is a list of the types of Trust that most clients consider:

  • Life Interest Trust
  • Discretionary Trust
  • Relevant Property Trusts
  • Bare Trust
  • Young Person's Trust
  • Pilot Trust
  • Vulnerable Person's or Handicapped Person's Trust
  • Discounted Gift Trust
  • Gift and Loan Trust
  • Family Trust
  • Asset Protection Trust

Click here for a brief synopsis of what each of these is and how it can be used for tax planning or property protection.

For further information on any Trust or advice on ways in which Trusts can be used to help you and your family please contact a member of our Private Client Department, in either our Camberley or Wokingham office.