Trusts

With Your Legal GP

A trust is a legal arrangement which allows you to put aside money or assets (trust property) that you wish to benefit yourself or another person (beneficiary) in the future. The cost is very much dependent on the amount of legal input required and how complex the specifics of the trust are. Usually, a simple trust will cost around £1000 to set up. You might be able to set up a trust without legal input it is not recommended due to the tax implications and other rules that apply to setting up a trust.

Types of Trusts

• Testamentary Trusts: Created by a will active upon the death of the settlor – where the settlor will become known as the testator or inter vivos trust meaning that the trust is created during the life of the settlor.
• Trust Categories: Types of trusts include fixed, discretionary, mixed and accumulative trusts depending on how you want either yourself or other people to benefit from the trust property. Once the property is transferred it cannot be revoked.

Advantages of Trusts

• Vulnerable beneficiaries: Advantageous when considering setting up a trust for someone who is not able to manage their money, for example if they are vulnerable, so that their financial needs are met.
• Future protection: Advantageous when considering setting up a trust for yourself so that your needs are met in the future if you cannot look after yourself or if you want to protect your property should your circumstances change in the future.

Your Legal GP can help you select the right trust to meet your wishes and draft your trust document to include any assets you want to transfer into the trust.

Law Society guidance on trusts