3 reasons to set up a trust | Benefits of a trust

When considering protecting your assets, one excellent way of achieving this is by choosing to set up a trust. By creating a trust, you are choosing to protect your assets, plan for your family’s future and potentially seek tax-efficient solutions.

In this article, we will help navigate what a trust is, 3 reasons to set up a trust and how you can set up a trust easily today!

What is a trust?

When you choose to set up a trust, you are essentially creating 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). Often, when assets are held in a trust, the settlor can set certain restrictions as to when the assets can be received. This may be to restrict a beneficiary from gaining access prior to turning 18 or even after a major life event such as a wedding. 

A common example of when a trust is useful is if you want to restrict a child from receiving monies until they reach the age of 18. In this circumstance, a simple trust can be made, meaning the trustee will hold the funds for the child until they reach the age of 18. Upon turning 18, the child may receive the monies in full. 

Reasons to set up a trust

When you consider protecting assets, it is important to remember the advantages of setting up a trust. Here are three benefits of having a trust:  

1. Control of your assets – A trust allows you to have greater control over your assets, compared to a will alone. Creating a trust allows you to be specific about the age and time in which your beneficiaries should inherit the assets.
2. Protect vulnerable beneficiaries – Certain trusts allow you to protect your vulnerable beneficiaries. For example, a disabled person’s trust means the assets are put towards the best possible use for the beneficiary.
3. Privacy & confidential concerns – Creating a trust allows for greater privacy when dealing with probate proceedings. A trust operates discreetly, keeping your financial affairs confidential. This is a great option for those wishing to keep the family’s financial details from the public, allowing for a more private and dignified management of your estate.

How to set up a trust

To set up a trust, you will need to have a trust document drawn up and signed by a qualified solicitor and the people being appointed to manage the trust. Together with the help of you, our trust experts will consider all the assets you wish to protect and ensure they are put into a trust which is right for you.

There are various types of trusts including life interest trusts, rights of occupation, disabled persons trust, property trusts, discretionary trusts, lifetime trusts, personal injury trust, bereaved minors trust, 18-25 trusts, and bare trusts. However, it’s important to note that each trust has a different purpose. It is recommended to seek legal advice before choosing your relevant trust.

Our experienced trust solicitors are well-experienced with the process of setting up a trust and are here to provide you with the knowledge and support you need to navigate the process.

Please contact our expert wills, probate & trusts solicitors today and let us assist you. Our Doncaster Solicitors can be contacted on 01302 341 414 and our Sheffield Solicitors can be contacted on 0114 272 1884. Alternatively, you can request a call back via our online enquiry form.