Trusts Solicitors in Plymouth, Devon & Cornwall

The Settlor is the person who creates the Trust and decides what goes into it. They set the rules for how those assets should be used and who should benefit.
The Trustees are the people or organisations responsible for managing the Trust. They hold and manage the assets in line with the Settlor’s wishes, making sure everything is done correctly and in the best interests of the Beneficiaries. Trustees are legally responsible for keeping proper records, filing any necessary tax returns and making fair, well-informed decisions.
The Beneficiaries are the people or groups who benefit from the Trust, which might include family members, children, charities, or others. They may receive income, have a right to live in a property, or inherit assets at a later date.
It’s possible for the same person to be both a Settlor and a Trustee, or even a Beneficiary, depending on how the Trust is structured.

You can place almost any asset you own into a Trust. This might include:

• Property or land, including your home or rental properties

• Money, savings accounts, or investments

• Shares, bonds, or business assets

• Personal items such as jewellery, antiques, or artwork

• Life insurance policies that pay out into a Trust on your death

Assets can be transferred into a Trust while you’re alive or through your Will after you die. However, once placed in a Trust, those assets legally belong to the Trust itself, not the individual, so it’s important to understand the implications. We can explain what that means in practice and help you choose the best structure for your needs.

Trusts can play an important role in tax and estate planning, but the rules can be complex. Some Trusts can help to reduce inheritance tax by moving assets out of your estate, while others can be used to manage capital gains tax or income tax more efficiently.
However, not every Trust is suitable for tax planning, and the wrong type of Trust could create unnecessary costs. Our solicitors work closely with clients and their accountants to ensure that any Trust is structured correctly and used in a way that benefits both you and your Beneficiaries in the long term.

Many people are encouraged to set up an Asset Protection Trust to stop their home or savings from being used to pay for future care costs. However, these arrangements can be risky and don’t always work as people expect. Local authorities carefully assess whether assets were placed in a Trust to deliberately avoid paying for care, and if they believe that’s the case, they can still include those assets when calculating what you must contribute.

In some cases, this means the Trust offers little or no real protection, and you could face unexpected costs or complications later on. These types of Trusts are often marketed aggressively, sometimes without full disclosure of the risks involved.

It’s essential to get proper legal advice before setting up any kind of Asset Protection Trust. We’ll explain exactly how they work, when they might be appropriate, and the potential downsides, so you can make a fully informed decision with confidence.

Most Trusts now need to be registered with HMRC through the Trust Registration Service. This applies even if the Trust doesn’t pay tax. Trustees must ensure that the Trust is registered within the relevant deadlines and that the information held is kept up to date, particularly if Trustees or Beneficiaries change.
Failure to register or update a Trust correctly can result in penalties, so it’s vital to stay compliant. Our team can help with registration, updates and understanding your ongoing responsibilities as a Trustee.Most Trusts are now required to register with HM Revenue & Customs which means trustees must both register and keep updating the information held about the Trust.

Trustees may also need to consider whether they are handling data and which General Data Protection Rules may apply to the information they are holding for the Trust administration.

Trusts are treated as separate entities for tax purposes, which means they may be subject to their own tax rules. Depending on the type of Trust and the assets it holds, there could be:

• Inheritance Tax charges when the Trust is created or every ten years thereafter

• Capital Gains Tax when Trust assets are sold

• Income Tax on income generated by the Trust’s investments

Trustees are responsible for meeting all these obligations and filing any relevant tax returns. Our solicitors can explain how each type of tax may apply and help ensure you meet your responsibilities while avoiding unnecessary penalties.

A Trust should be reviewed regularly to ensure it still reflects your wishes and remains legally and tax compliant. We recommend reviewing it at least every few years, or whenever there’s a major life event such as a marriage, divorce, the birth of a child, or the sale of property.
Regular reviews also allow you to check that Trustees are comfortable with their responsibilities and that Beneficiaries’ needs are still being met. We can review the Trust with you and provide practical advice on any updates or changes that might be needed.

Our Trust Solicitors can support you at every stage, from setting up a new Trust to reviewing or winding up an existing one. We’ll explain everything in clear terms, outline the costs upfront and guide you through any paperwork or registration requirements.
We also work closely with financial advisers and accountants where needed to make sure your Trust fits into your wider estate and tax planning.

Whether you’re planning for the future, managing a family Trust, or acting as a Trustee, we’ll help you make confident and informed decisions. To arrange your fixed-fee initial consultation, call 01752 827067 or email trusts@nash.co.uk.