Trust Planning

Trusts are often the most appropriate way of preserving wealth for future generations. Provided they are established and managed correctly.

Reasons To set up a Trust


Inheritance Tax

Capital Gain


Avoiding probate delays

What is a Trust?

A trust is a legal arrangement where one or more ‘trustees’ are made legally responsible for holding assets. The assets – such as land, money, buildings, shares or even antiques – are placed in trust for the benefit of one or more ‘beneficiaries’

The trustees are responsible for managing the trust and carrying out the wishes of the person who has put the assets into trust (the ‘settlor’). The settlor’s wishes for the trust are usually written in their Will or set out in a ‘Deed of Trust’ or ‘Declaration of Trust’.

The purpose of a trust Trusts may be set up for any number of reasons, for example:

  1. to control and protect family assets
  2. when someone is too young to handle their affairs
  3. when someone cannot handle their affairs because they are incapacitated
  4. to pass on money or property while you are still alive
  5. to pass on money or assets when you die under the terms of your will – a ‘will trust’

What is Trust Property ?

Trust property’ is a phrase often used for the assets held in a trust. It can include:

money or cash · investments · land or buildings · other assets, such as paintings, furniture, or jewellery – sometimes referred to as ‘chattels’

  • The cash and investments held in a trust are also called the trust ‘capital’ or ‘ trust fund’. This capital or fund may produce income, such as interest on investments, savings, or dividends on shares.
  • The land and buildings may produce rental income. Assets may also be sold producing gains for the trust.

Types of Trust

Disabled Person’s Trusts

Family Trusts Children’s

Protective Trust

Lifetime Discretionary Trusts

Home & Professional Landlord Protection Trusts

Nil Rate Band Discretionary Trusts

Asset Preservation Trusts

Property Protective Trusts

Do I need a trust and what is it used for?

Trusts are often used to manage the inheritance of younger children who are not financially independent yet. But there are other reasons for setting up a trust.
Safeguard your asset means that by setting up a trust allows you to protect your life insurance and ensure your beneficiaries get a higher amount. That is because without a trust, your life insurance pay-out gets added to your estate and will be taxed. If it is in a trust, you will not pay IHT on it. This is known reducing liability to pay certain taxes.
Other things to consider are for example, if you have young children, you might want them to gradually receive their inheritance so that it is useful for them over a longer period. You can also put conditions on the trust, so that it can only be spent on certain things like education or a first house. This is known as managing your estate.

Approach that is structured to your Needs

We can also advise you how you can make gifts from your surplus income, and how you get relief from IHT if you pass on relevant business assets, and some types of agricultural land. It can be worth considering putting some of your cash, investments, or property into a trust, as by doing so, they will no longer form part of your estate for IHT purposes.

If you feel that your estate is likely to be subject to IHT, we can help you to or support to obtain in-depth professional advice that looks at all aspects of your requirements, lifestyle and goals, and develops a financial strategy that meets your needs.

For a fixed price quote, call our Team of expert or Request a callback and we will call you.

We Can advise on :

  • Administering Trust assets
  • Advising on income tax, capital gains tax and inheritance tax issues
  • Advising on trustee duties and requirements
  • Advising trustees, attending meetings, liaising with professionals
  • Annual trust accounts
  • Day-to-day book keeping
  • Making income and capital distributions
  • Tax compliance
  • Winding up the trust

Frequently asked questions

trust is traditionally used for minimizing estate taxes and can offer other benefits as part of a well-crafted estate plan. A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. … Other benefits of trusts include: Control of your wealth.

Trusts are set up for a number of reasons, including:

  • to control and protect family assets
  • when someone’s too young to handle their affairs
  • when someone cannot handle their affairs because they’re incapacitated
  • to pass on assets while you’re still alive
  • to pass on assets when you die (a ‘will trust’)
  • under the rules of inheritance if someone dies without a will (in England and Wales)

The main types of trust are:

  • bare trusts
  • interest in possession trusts
  • discretionary trusts
  • accumulation trusts
  • mixed trusts
  • settlor-interested trusts
  • non-resident trusts

Generally, assets you want in your trust include real estate, bank/saving accounts, investments, business interests and notes payable to you. You will also want to change most beneficiary designations to your trust so those assets will flow into your trust and be part of your overall plan.

  • A trust provides asset protection and limits liability in relation to the business.
  • Trusts separate the control of an asset from the owner of the asset and so may be useful for protecting the income or assets of a young person or a family unit.
  • Trusts are very flexible for tax purposes.