since 1909

Search

 

Wills, Trusts & Probate

Trusts

A Trust is a means of holding money or property for designated individuals without giving immediate access to the assets.

The usual reasons for creating a Trust include:

  • Protecting beneficiaries from themselves or from third parties
  • Facilitating the making of a gift when the beneficiary is too young or immature to hold the gift themselves
  • Protecting the means-tested benefits of a beneficiary
  • Disposing of assets for tax-saving purposes without giving an immediate right to a beneficiary.

How do Trusts arise?

  • In a Will – A Trust can be created within a Will so that the Trust is set up on death.
  • Intestacy – If a person dies without a Will, where a minor stands to inherit a Trust will automatically arise.
  • During lifetime – An individual may choose to set up a Trust during their lifetime for several reasons. Usually, this is in order to mitigate Inheritance Tax or for the benefit of a vulnerable person.
 

There are many types of Trusts and specialist advice needs to be taken to ensure you are utilising the correct type of Trust for your circumstances. It is important to ensure that it is being administered correctly and that it is complying with all tax legislation.

Types of Trust

We can advise you on the following types of Trust:

  • Discretionary Trusts
  • Bereaved Minors’ Trusts
  • Disabled Trusts
  • Immediate Post Death Interest Trusts also referred to as a Life Interest Trust)
  • Bare Trusts
  • Pilot Trusts
  • Relevant Property Regime Trusts.

Trustees’ Duties

As a Trustee, your duties would include, but are not limited to:

  • Holding annual Trustees’ Meetings
  • Complete and record minutes of the annual meetings
  • Complete and submit annual Trust Tax Return to HMRC
  • Ensure the assets of the Trust are invested appropriately.
 

If you need to establish a Trust for whatever reason, or you have a Trust and want to ensure that it is being dealt with or taxed correctly, please contact us. For more information about how we can assist with Trust matters please contact Steve Meredith at sxm@wdavies.com.