A trust is a legal device set up while you are alive to protect your assets. They can be used to minimise the Inheritance Tax paid on your death or to ensure that someone is protected. All types of assets can be placed in a trust, such as land, personal property, financial assets and life insurance.

As the Settlor of the trust (the person establishing the trust), you’ll decide who will manage the trust on your behalf (the trustees) and those who will benefit from it (the beneficiaries). The trustee(s) manage all financial activity and assets in the trust but can only do so in the way laid out in the Trust document. When creating a trust, you may outline how beneficiaries should access assets and receive financial support. For example, you may limit younger beneficiaries’ access until they reach a certain age. Trusts give settlors an incredible sense of control over their wealth and peace of mind around how their assets will be distributed after passing.

Trust creation has many benefits, especially for business owners, those with large estates and those who have children from previous relationships.

Will trusts are designed to protect your wishes after your death and can be used for a number of reasons including helping to fund the future generation’s education, or support chosen charities.

Trusts may mitigate tax in a number of ways and are often suggested by solicitors as part of the tax planning process.

Trust lawyers can create various types of trusts, including trusts in your Will that are applicable after death. You may be referred to trust law solicitors or introduced to a trust specialist as part of a tax planning service. At Lockings, we have teams of tax and estate planners, as well as trust lawyers, to assist your every need.

Although it is possible to set up a trust independently, it is better to instruct a solicitor to do the hard work for you A solicitor is trained to review complex trust terms, remove ambiguous wording consider all the tax implications and comply with changing trust laws to ensure the validity of this important legal agreement.