01869 226760 / 07817 685043 gail@bicesterwills.co.uk

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, which can be property, money, shares etc. to someone- a ‘trustee’ to look after for another person the ‘beneficiary’.
The trustee technically owns the assets and will manage the trust for the beneficiary, who will receive the asset at a given time.

Different Types of Trusts

Now this can get complicated and you should seek legal advice when setting up a trust, as there are several types of trust, and it will come down to what’s best for tax and fits the purpose.

The basic trusts are

– Interest in possession trust – the beneficiary can receive an income from the asset but not the asset itself. An easy example of this is the trust is set up with a partner as the beneficiary, say it’s a rented property, the beneficiary can receive the income from the property but when they die it will pass to a specified recipient, children for example.

– A Bare Trust – straight forward – gives everything to the beneficiary (if over 18)

– Mixed Trust – bit of a mix and match – part of the trust is like the, ‘Interest in possession trust’ but some of the assets are treated under the rules of a different trust.

– Discretionary trust – this gives the power to the trustees to decide how the assets are distributed, and investment decisions within the trust.

– Vulnerable Persons Trust – this may be of tax benefit if the beneficiary is a ‘vulnerable person’.

There is a myriad of considerations when setting up a trust, most are set up very easily, some may be subject to legislation changes, or allowance changes, or may be the structure of a Will, call Biceser Wills & Probate on 01869 226760 or email gail@bicesterwills.co.uk to discuss your individual needs.

Services

    

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.

We would like to express our thanks and gratitude to Bicester Wills for the recent arrangement of our long overdue wills. Gail came to our house at 7.30pm and spent some quality time..finding and ensuring that not only did we understand the process but also that we considered all the options available to us. Within a very short time we had the first draft for checking and within days of returning these had the real thing arrive for us to sign and have witnessed.

Gail made it a painless and thought provoking exercise…our wishes have been understood and will be acted upon..

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