If you want to pass on money or property to someone else but do not want to do this by way of outright gift, then it may be appropriate for you to give it to them via some sort of trust arrangement. Using a trust may also be appropriate where you want someone to benefit from the income generated by an asset while they are alive but want the asset to go to someone else when they die, where you want to give money to children or other vulnerable relatives who will struggle to manage things for themselves, or if you want to leave money to charity.
Trust arrangements involve three different sets of people. There is the person who sets up the trust (known as the settlor), the people who are entrusted to run the trust (known as the trustees), and those entitled to receive the income or capital from the trust (known as the beneficiaries).
Trusts can be created as a standalone arrangement or via your will and can be useful to help pass on money and property in a controlled manner and also for tax planning purposes, particularly around inheritance tax.
There are four main types of trust available:
- a bare trust, which is normally used to pass on money to children and which involves the trustees managing the trust until the children reach the age of 18, at which point they become entitled to everything held in the trust;
- an interest in possession trust, which is commonly used to ensure one beneficiary receives an income for the rest of their life, but when they die any capital in the trust passes to someone else;
- a discretionary trust, which is commonly used where the settlor is happy to allow the trustees to decide how much each beneficiary should receive based on an assessment of their respective needs at different stages of their lives; and
- a charitable trust, which can be used to make donations for various charitable purposes, including the relief of poverty or the advancement of education.
At Hatten Wyatt Solicitors in Kent, our team of wills, trusts and probate lawyers have extensive experience in establishing trusts of all types to help people pass on their wealth in the most appropriate way for their family.
Our trusts solicitors will:
- consider your circumstances and whether a trust may be appropriate;
- discuss the different types of trust available and recommend which one would best meet your objectives;
- set up the trust on your behalf and ensure all legal requirements are complied with;
- help you select trustees or refer you to our professional trustees team;
- explain the tax implications arising from trust arrangements;
- provide ongoing support to you and the trustees if you require it; and
- help with the restructuring of existing trusts, particularly on behalf of farming families and landed estates.
Advising individuals and families throughout Gravesend, Kent and beyond
We can also offer meetings at your home, or over the telephone via Skype if you have the need to travel abroad extensively.
An initial appointment to discuss your requirements can be arranged from £150 plus VAT. After that we can agree funding arrangements to suit your budget.
Get in touch with our trusts solicitors in Gravesend, Kent
If you would like to find out how a trust could help you pass on your wealth, please get in touch to see how we can help. You can call us on 01474 351199 or use our contact form and we will call you.