Trusts can be set up for a variety of reasons and for varied amounts, all decided upon and verified by you as an individual. It may be that you do not want your loved ones to receive a large sum of money in one go upon your death, or that you do not feel that any wealth or assets you leave will be suitably or responsibly utilised by the recipient until a certain age. In these scenarios, trusts will allow you to monitor and control the dissemination of your monies in exactly the way that you see fit.
As an example, it could be that you wish to set up a trust whereby a chosen charity that is important to you will receive a certain amount per month during your life and then a certain amount upon your death, but only to be payable in accordance with certain terms and conditions laid out by yourself. Similarly it could be that you wish for a child or grandchild to be allocated a percentage of their inheritance at pre-determined incremental periods until the age of 25
Three people will need to be named and involved when it comes to trusts. The settlor is the individual who creates the trust, the trustee is the person who is authorised to manage the trust and the beneficiary is the party which will receive the content of the trust.
Tax planning must be carefully though over when large amounts of wealth or assets are involved via inheritance, and trusts are an excellent way to manage this. You can create and incorporate a trust within your will to begin in the event of your death if you so wish
There are four main types of trust available:
- a bare trust, which is normally used to pass on money to children and which involves the trustees managing the trust until the children reach the age of 18, at which point they become entitled to everything held in the trust;
- an interest in possession trust, which is commonly used to ensure one beneficiary receives an income for the rest of their life, but when they die any capital in the trust passes to someone else;
- a discretionary trust, which is commonly used where the settlor is happy to allow the trustees to decide how much each beneficiary should receive based on an assessment of their respective needs at different stages of their lives; and
- a charitable trust, which can be used to make donations for various charitable purposes, including the relief of poverty or the advancement of education.
At Stephens & Son solicitors in Chatham our team of wills, trusts and probate lawyers have extensive experience in establishing trusts of all types to help people pass on their wealth in the most appropriate way.
Our trusts solicitors will:
- consider your circumstances and whether a trust may be appropriate;
- discuss the different types of trust available and recommend which one would best meet your objectives;
- set up the trust on your behalf and ensure all legal requirements are complied with;
- help you select trustees or refer you to our professional trustees team;
- explain the tax implications arising from trust arrangements;
- provide ongoing support to you and the trustees if you require it; and
- help with the restructuring of existing trusts, particularly on behalf of farming families and landed estates.
Advising individuals and families throughout Chatham, Kent and beyond
We have offices in Chatham, Maidstone, Tonbridge, Gravesend and Tenterden where we can meet you to discuss your requirements.
We can also offer meetings at your home, or over the telephone via Skype if you have the need to travel abroad extensively.
An initial appointment to discuss your requirements can be arranged from £150 plus VAT. After that we can agree funding arrangements to suit your budget.
Get in touch with our trusts solicitors in Chatham, Kent
Call us on 01634 811444 for any business related advice you need. Alternatively complete our contact us form and we will be in touch as soon as possible.