At Hatten Wyatt we have over a century’s experience in dealing with trusts and trust law. The Partners of Hatten Wyatt act as professional trustees for a great number of trusts. There are a various types of trusts, including secret trusts. However, the most common types of trusts are Will trusts and lifetime settlement trusts. When setting up a trust, the legal document is either the Will or the trust deed under which the settlor (the person at whose request it is set up) places assets (property, stocks, shares or cash) into the trust, which is then managed by the trustee(s) in accordance with the terms of the trust for the benefit of the beneficiaries.
The lifetime settlement trust comes into effect immediately and can be used as a tax efficient vehicle for transferring assets to children who would ultimately benefit from the settlor’s estate, but whilst ensuring that the trust is managed for their benefit until a particular event, such as getting married or reaching a particular age above majority. Once the assets are settled in a lifetime trust, the settlor no longer has any interest in the assets and the trustees become the legal owners of those assets and have responsibility to manage those assets for the benefit of the beneficiaries of the trust.
Will trusts are set up upon the settlor’s death in accordance with the provisions within the Will. Will trusts are often used when the settlor does not have sufficient assets to settle a lifetime trust for the beneficiaries, so the Will trust places the assets into a trust on the settlor’s death for example children under the age of majority which is then managed by the trustees until the beneficiaries reach a certain age above majority, in accordance with terms of the trust.
It is also possible to provide someone, such as a husband or wife or civil partner with a lifetime interest in a trust with some other party(ies) such as children having the beneficial interest in the trust. In these cases, the husband or wife or civil partner, would be entitled to enjoy the income of the trust, whilst the capital is preserved for the children, which they would receive when the life interest came to an end.
The different types of trusts have different tax consequences and consequently advice should be sought from professionals before setting up a trust. There also various purposes for setting up a trust, from providing for an elderly relation to children or someone suffering from a disability. If you are providing for young children (particularly, but not only, your own) or perhaps grandchildren, trusts are essential to ensure that funds are properly managed until the children are old enough to assume responsibility themselves
If your family set up is a little more complicated and you have step children or children from a previous relationship as well as your partner or spouse to consider, a trust may be vital in ensuring everyone is adequately cared for.
You may wish to provide for a relative, who is disabled or bankrupt or going through a divorce. A trust can help them receive the most benefit from you either during your lifetime or in the event of your death.
Another invaluable part of tax planning is the making of lifetime gifts, frequently but not exclusively, for the benefit of your children. A properly constituted and managed trust may be essential here.
We can advise you on the use of trusts in a variety of situations and assist you in their implementation and management. We can advise you on the type and terms of the trust, what powers are needed and who shall make the best trustees.
With any trust, the appointment of the correct trustees is vital, and those who understand the legal implications along with fiduciary duties are to be the trustees of choice. Here at Hatten Wyatt, our experience in managing trusts for the benefit of the beneficiaries has been proven over the years. Given the specialist rules which surround trusts, legal advice and guidance should be sought at the outset.
Whether you want to set up a trust or are a current trustee and would like some help with the running of a trust, one of our solicitors will be able to assist you.
The creation of a Trust in your Will is a frequently used and invaluable tool for various methods of Inheritance Tax mitigation.
At Hatten Wyatt, we can advise on various types of trusts. Our services can include the appointment of ourselves as trustees and we would, in that event, administer and manage the trust in the best interest of the beneficiaries.
Whether you would like to set up a trust or are a current trustee and would like some assistance with the running of an existing trust, one of our Solicitors shall be able to assist you.
