Trusts

Trusts are a complex area that can apply to individuals (particularly minors), corporations and charities to safeguard and invest money. This specialist domain is largely about ensuring the security of the beneficiaries and it also has potential for tax efficiencies. The setting up and management of trust funds can be linked to any aspect of our Financial Planning process, and we work with relevant professionals to ensure legal compliance.

What Is A Trust?

A trust fund can be used to manage assets on behalf of a range of people in a variety of different scenarios. They can be quite complex and the way in which they are taxed differs according to the particular situation, so it is important to seek advice if you are considering setting up a trust.

A word about the terminology: the ‘settlor’ puts assets into the trust via a ‘trust deed’; the ‘trustee’ manages the trust; and the ‘beneficiary’ reaps the benefit of the trust.

Trusts may be established to protect family assets, perhaps in the case of minors or family members who are incapacitated. They may be used to pass on assets when you die but can equally be used while you are still alive, and would also be used if someone dies without a will.

What Types Of Trust Funds Are There?

• BARE TRUSTS

• INTEREST IN POSSESSION TRUSTS

• DISCRETIONARY TRUSTS

• ACCUMULATION TRUSTS

• MIXED TRUSTS

• SETTLOR-INTERESTED TRUSTS

• NON-RESIDENT TRUSTS

• TAX

Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor. The Financial Conduct Authority does not regulate trust or tax advice.