What is a Trust?
Setting up a Trust is a way of giving away assets, either via your Will, or during your lifetime, while still retaining some control over the use of the assets, through the Trustees.
The 'Settlor' is the person who sets up the Trust. The 'Trustees' have control of the trust funds, and must hold the funds on trust for the 'Beneficiaries'. Trustees are bound by strict duties, such as to act in the best interests of the beneficiaries, and therefore they often seek legal advice as to their duties and powers.
There are different types of Trusts, and we can advise you as to the most suitable type depending upon your objective.
Would you like to:
1. Ensure that your children inherit your share of your joint estate? If you leave all of your estate to your spouse or partner and they marry or make a new will after your death benefitting someone else, your children may be disinherited, leaving them with nothing. It is very hard to challenge this, leaving your children without an inheritance;
2. Set up a Trust to control assets for a disabled child or other beneficiary, this may also protect any means tested benefit that they receive;
3. Set up a Trust to protect assets for a child or other beneficiary who is bankrupt or likely to go bankrupt;
4. Set up a Trust to protect assets for a child or other beneficiary who is going through a divorce or may divorce in the future; or
5. Set up a Trust in your Will to potentially avoid paying care home fees on the assets in the Trust, should your spouse or partner be liable for care fees after your death.
We will be happy to explain any of the above scenarios with you in detail, and how a trust may help to avoid any expensive problems after your death. Trusts are not just for the wealthy or those with complex estates. Trusts can be useful for anyone who is concerned about the above scenarios.
Please do not hesitate to contact us, should you have any questions regarding the above.