Trusts have been around since the Crusades and we see examples of Trusts every day, the NHS, schools even home ownership. When you hear the word Trust you think its complex and for the wealthy. However the use of a Trust can be beneficial to your family and loved ones.
If you are worried about:
A Trust is a great vehicle of ensuring your assets stay with your loved ones and not into the grasp of people you did not want to benefit.
There a 3 different ‘positions’ in a Trust:
There are a variety of different Trusts and different companies use different names, however, put simply there are:
Bare Trusts – The settlor states who are the beneficiaries and the asset (both the income and capital) can be claimed by the beneficiaries when the reach 18.
Interest in Possession Trusts – This is where the Settlor nominates a specific beneficiary who has the right to the income of the trust and different beneficiaries are allowed the Capital, after the death of the person of interest.
Discretionary Trusts -This is a very flexible Trust and the most common form of Trust. The Settlor allows the Trustees to use their discretion to decide what happens to the income and the capital and how they distribute it. Normally, the Settlor nominates a class of beneficiaries able to benefit from the Trust. However, no one has an absolute right to the income and capital. The Settlor can leave a Letter of Wishes to advice the Trustees on who and how they want the beneficiaries to receive the asset, but ultimately, this decision rests with the Trustees.
Trusts can be set up during the settlors life time or via Will planning. Our trust products are in association with Countrywide Tax & Trust corporations who have bespoke Trusts to cater for a variety of different needs.
Arrange an appointment with one of our consultants today!