Introduction - What is a Trust? 

It is a common human trait to put off looking too far into our futures to consider whether we will need assistance with our financial, property or personal affairs. One of the ways you can secure peace of mind now, is to put your assets, (including property, money and investments) into Trust.

Trusts are a mechanism to help protect and manage your assets. They are becoming increasingly popular, in an era where successive governments seem keen to divest you of as much of your hard-earned wealth as they can. 

If you want to set up a Trust, we will listen carefully to you when describing your personal circumstances and future preferences. This enables us to advise you of the different types of Trust available to suit your needs, so that you are able to make more informed choices., to This will ensure your assets are managed effectively in a Trust best suited to your own circumstances. Addressing matters now will allow you to get on with the important business of living life to the full, with confidence.

If you would like to speak to one of our down to earth, friendly specialist solicitors and lawyers across any of our offices located in Ashford, Cranbrook and Hythe please do contact us, or Get In Touch via our website and we will phone you straight back.  

How to set up a Trust.

Dealing with your assets is incredibly important and precise wording should be adopted, to ensure that your future wishes are enacted. Consequently, it does make sense to retain solicitors and specialised lawyers to act on your behalf. This allow you to avoid potentially costly mistakes if the Trust were to be ambiguously worded. 
We can guide you through the process, documenting what your assets are, who should be the Trustees and the Beneficiaries.  The Trust will also set out the circumstances when it will become operative and your instructions to be followed.

When is the best time to create a Trust?

There is no time like the present – yes, we would say that wouldn’t we! The Trust could for example detail how your assets are used to look after yourself in the future, if you were to lose capacity or fall seriously ill. In a similar vein it could be set up to provide financial support to members of your family, if they are unable to manage their own finances, for the time after your own death.

People will often set up Trusts for their children, which can be especially useful if a child has learning disabilities, or mental health conditions. Once in place the Trust will help stop you  worrying about how they will manage financially after you die. 

Who should I appoint as Trustees?

Naturally you may want to appoint people that are close to you, who are responsible, trustworthy and can be relied on. Normally this would be family and close friends .Up to 4 people may be appointed and it is advisable to have at least 2. Speak to them first, to see if they will accept the role and take on the responsibilities it entails.
Although charges would be involved, one or more of your appointed Trustees can be a solicitor, or other specialist lawyer, if you would want to secure the extra peace of mind that involvement would bring. 

What Trust should I use?

Your own circumstances will dictate the type of trust that is employed: 

 A Bare Trust – under which all assets are held in the name a Trustee until such time as any Beneficiary reaches the age of 18 or over. At that point the assets will go to the Beneficiary.

• A Discretionary Trust – under which the Trustees themselves control the assets and decide upon the best time and method to transfer them to the Beneficiaries.
• A Mixed Trust – This involves assets from a number of different Trusts, under which assets or the income derived from them may be released to the Beneficiary. This may include:
• Interest in Possession Trust - under which for example, an income from the trust can be released immediately, but not the overlying asset from, which it is derived. For example this may involve the net rental monies from a property, which is itself held on Trust.

Do you need to Register your Trust?

If the Trust contains assets it is likely they will have tax implications, so it should be registered with HMRC to ensure its validity. Potential tax implications would include Capital Gains Tax, Income Tax, Inheritance Tax and Stamp duty etc.  

Equally the Trust should be registered  with HMRC in order that appropriate Tax reliefs can be claimed.

Contact Us

Should you wish to discuss how setting up a Trust could benefit you, in your particular set of circumstances, please do not hesitate to contact one of our  specialist solicitors and lawyers across any of our offices located in Ashford, Cranbrook and Hythe or Get In Touch via our website and we will phone you straight back.