Trusts

Trusts used to be thought of as something for the rich, a way of passing assets through the generations and avoiding tax. This is no longer the case.

What is a trust?

A trust is a document that enables one person (known as the Settlor) to transfer assets to another person (known as the Trustee) to look after, for the benefit of someone else (known as the Beneficiary).

An example of a simple trust would be where monies are left to a child in a will, but they cannot have the money until they reach the age of 18. During this time the trustees have an obligation to look after the money for the benefit of the child. The trustees would usually be allowed to pass money on to the child’s guardian for the benefit of the child whilst at the same time retaining control of the asset.

What do trustees do?

The trustees are the people who look after the assets in the trust. When dealing with a trust in a will the trustees are often also the executors.

Trustees have various obligations which they must meet. Their role is a very important one, not only because you are placing reliance on them to carry out your wishes but also because of the fiduciary duties that they have. A trustee is under an obligation to ensure that the trust’s assets are safeguarded and must ensure that they always act with reasonable care. This role is a very important one and you should think carefully about who you entrust this role to.

What are trusts used for?

Trusts are used for several reasons, including asset protection, tax planning, and protection in second marriages, as well as providing for children or young beneficiaries.

A trust can be put in place during your lifetime to take effect straight away or can be incorporated into your will, depending on what your wishes are.

How we can support you

Trusts can be very complex documents. However, they can also be the best way to ensure your wishes are met.

Whether you need help establishing a new trust or administering an existing trust our team of expert solicitors in Doncaster and Sheffield are here to help.

It is essential to take professional advice before entering into a trust as there can be tax implications of placing assets within trusts.

For more information, click the links below or download one of our helpful guides.

Alternatively, you can give us a call on 01302 341414 for our Doncaster solicitors and 0114 272 1884 for our solicitors in Sheffield and our friendly team will be happy to have a chat with you.

There are numerous types of trust available. The most common types include: