Trusts

A Trust can be a tax-efficient way of benefiting someone in the future.  For example, money passing to a relative on their eighteenth birthday; an allowance paid every month to a grandchild; a valuable possession held for safekeeping.

Trusts can be arranged to deal with a vast range of circumstances, but their success depends on careful preparation.

What is a Trust?

In simple terms, it’s a legal arrangement where you can give an asset (such as property, money, shares) to someone, known as the ‘trustee’, to look after for another person, known as the ‘beneficiary’.

The trustee technically owns the assets and is obliged to manage the trust for the beneficiary, who will then receive the asset at a given time.

Different Types of Trusts

It is essential to seek legal advice when setting up a trust, as there are several different types, and the best option will be one which is most tax efficient and fits the purpose.

There are myriad considerations when setting up a trust.  Most forms of trust are set up very easily, but some may be subject to legislation or allowance changes, or perhaps dependant on the structure of a Will.

Read more below and contact us for advice and to discuss the detail of your requirements.

The basic trusts:

Interest in Possession Trust

The beneficiary can receive an income from the asset but not the asset itself.

For example, a trust set up for a rented property with a partner as the beneficiary of the trust for their lifetime.  In this case the partner is the beneficiary and can receive the income from the property.  When they die the rented property will then pass to a specified recipient, such as their child.

A Bare Trust

This is a straightforward trust where everything is given to the beneficiary outright once they are over 18.

Mixed Trust

This is where some of the trust has specific provisions tailored to the requirements of the settlor (the person making the trust).

For example, part of the trust may be in the same terms as an Interest in Possession Trust, but some of the assets are treated under the rules of a different trust.

Discretionary Trust

This type of trust gives the power to the trustees to decide how the assets are distributed, and to make investment decisions within the trust.

Vulnerable Person's Trust

There are circumstances where a specific trust such as this may be of tax benefit, providing the beneficiary is a ‘vulnerable person’.

Services

Wills    

Costs

Transfer of assets into Trust in your lifetime for the ultimate benefit of a Third Party – from £4,000

Contact us for a cost estimate tailored to your specific needs.

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We will have no hesitation in recommending your services to other members of our family as well as our friends and business associates.

Steve and Rachel W

We’ve entered the Shine (virtual) Balloon Race in May!

We’re delighted to be fundraising for Shine – a charity offering support to those living with hydrocephalus and/or spina bifida. Shine host balloon races to raise funds for their shunt services. With an eye on the environment, they’ve made the races a virtual event so no real balloons will be released!

Talking about Trusts

Trusts are used to manage the passing on of assets or money in a particular way. There are a number of different types of Trust, serving different functions. A Trust may be established during a lifetime, or started under the provisions of a Will. They are therefore a crucial aspect of estate planning.

Bicester…Buckingham & now Oxford!

Our business has clients all across Oxfordshire and Buckinghamshire. We are delighted to have opened offices in Buckingham and now also in Headington, Oxford. We are now offering our Wills, Probate, Lasting Power of Attorney and general estate planning services from all three offices. Come and see us!

The cost of dying is on the up again

Of course there’s a cost to dying! But when we die, we’re not there to foot the bill, so why should we worry?
The thing is, it can be tricky – or impossible – for loved ones to come up with a significant sum of money at the time of a death. (The costs & infographics in this blog post are taken from SunLife (2018), Cost of Dying Report.)