Trust Solicitors

What Is a Trust?

A trust is a way to pass on or manage money, property, or other valuable things for someone else’s benefit. You, the settlor, transfer assets into the trust, and someone you choose (called the trustee) looks after them. The trustee makes sure everything is managed properly and the assets or the income generated from the assets are distributed to the people you’ve chosen (called the beneficiaries).

Trusts are often used in estate planning to help protect assets, make sure loved ones are taken care of, or even to reduce taxes. They can be especially useful if you want to support children, relatives with special needs, or anyone who might need help managing their finances.

Trustees have a legal obligation to manage the trust’s assets responsibly and in line with the terms laid out in the trust deed, always acting in the best interest of the beneficiaries.

What Can Be Included in Trusts?

A wide range of assets can be included in a trust, but common examples include:

• Cash and investments (e.g., savings, stocks, bonds)
• Property
• Business interests (e.g., shares in a private company)
• Life insurance policies (placed in trust to avoid being part of the estate)

The assets that you choose to transfer into trust depend on what you want the trust to do – whether it’s for asset protection, inheritance planning, tax efficiency, or supporting vulnerable beneficiaries.

Are Trusts Subject to Inheritance Tax?

Yes, trusts can be subject to Inheritance Tax (IHT), but the rules vary depending on the type of trust and how it’s used. Some key points include:

• Simple or Bare trusts contain assets which are treated as part of the beneficiary’s estate and may be subject to IHT on their death.
• Discretionary trusts are subject to an immediate inheritance tax charge (on the value over the nil rate band), periodic charges every 10 years, and exit charges when assets are distributed.
• Income or Interest in possession trusts: The beneficiary who receives income from the trust is treated as the owner of the trust property for inheritance tax purposes.

While trusts don’t eliminate inheritance tax, they can be an effective tool to manage and reduce your inheritance tax liability with careful planning. Expert advice and guidance are essential to navigate the complex tax rules involved.

How Can We Help You Set Up a Trust?

Setting up a trust is a significant decision that requires expert legal and financial advice. Our team is here to guide you through it, every step of the way.

Our team can help with:

• Tailored advice on the right type of trust for your circumstances
• Drafting clear, legally sound, and tax-efficient trust deeds
• Helping you select the most suitable trustees and structure
• Managing registration with HMRC through the Trust Registration Service, and ongoing compliance
• Providing trustee support and trust administration services
• Making sure your trust works alongside your long-term estate plans

Whether you’re planning for your family’s future, protecting wealth, or supporting someone you care about, we’ll make the process as simple and stress-free as possible. Contact the team today to book an appointment.

About our Trust Specialists

The Private Client team at Amphlett Lissimore is an experienced team that can assist you with your Wills, Probate, and lifetime planning matters. Our specialist solicitors include a member of STEP (Society of Trust and Estate Practitioners), and can guide you through the complexities of trust law, ensuring that you are clear on what your trust arrangements will achieve.

Get in touch today to speak with one of our trust specialists.