Do you have children or dependents who rely on you for financial support? Are you a business owner or a landowner? Have you thought about the best ways to provide for your loved ones if you pass away? Trusts are a great way to ensure that your beneficiaries are financially taken care of when you’re no longer around. If you’d like some advice on creating or managing Trusts, our team of Will Solicitors are on hand to help you navigate this process.
“Setting up and administering a Trust is generally straight forward, but we know from our experience that it’s common for our clients to feel that they do not fully understand how these agreements work and this is where we can help; we are here to explain and advise on the choices that you have to match your circumstance and aims.”
David Cornelius, Partner
What are Trusts?
Trusts are a form of legal agreement that provide a very useful tool to protect and manage the distribution of assets. This includes land, property and money for named individuals, who are called beneficiaries. Whether you choose to financially provide for your whole family, your children or a disabled relative, a Trust ensures your beneficiaries are financially secure.
In many cases, Trusts can be set up to mitigate future tax payments or as part of estate planning services. There are a number of different kinds of Trust, including bare trusts, discretionary trusts and interest-in-possession trusts.
How Nash & Co Solicitors can help you
At Nash & Co Solicitors, our experienced team can advise you on both existing Trusts and the establishment of new Trusts. A well run and administered Trust is a particularly useful way of managing assets if done correctly. Ignoring how the Trust should be managed or not fully understanding how it works can cause significant problems. We look at Trusts for clients to explain what they do and how they work. We’ll also identify and deal with any potential problems which may occur in the future. We also assist in the general annual administration of Trusts and when the Trust is no longer needed, we can help dissolve it.
In the first instance, contact us for a free consultation. We will review the arrangements that you have in place and explain the choices that you have. If you’re interested in these arrangements but aren’t sure how they work, simply contact us and we will talk through the options.
There is great deal of information available about Trusts online. While this can be useful, it may not provide the answers that you are looking. What’s more, it’s often difficult to know the right questions to ask in the first place.
We have the expertise and experience to help our clients with their unique situations. We firmly believe that no question is too small or insignificant. So, we’re happy to answer and explain all aspects of what’s involved.
Find out more
Please find below a link to a guide produced by the UK Care Guide explaining some details regarding setting up Trusts in your lifetime to mitigate inheritance tax. It is very important that you choose the right type of trust for you and your family and if you do have any questions after reading the guide or would like to set up a trust for inheritance tax planning purposes, please contact one of the team here at Nash & Co Solicitors who be happy to chat through things with you.
You can also schedule a call back from any of our solicitors in Plymouth. Simply submit a request through our contact form.
You can create a trust that you put your savings and home into in order to protect it from care fees and sometimes also from the hassle of maintenance of the property. You will need to appoint Trustees for the Trust.
Not always. The Local Authority have to consider that a reason that you put assets in a trust was to avoid care fees and they can pursue the trustees for a period of 6 years after the date of the gift, if you need Local Authority financial support for care within that period.
Trusts are taxed in their own right and you can lose principle private residence exemption in respect of the sale of your home, if you sell and want to purchase another home. You might have to pay Capital Gains Tax.
Trusts are subject to a 10 year charge for Inheritance Tax at 20%, so the Trust will pay this every 10 years or part thereof. You will need to register the Trust with HM Revenue & Customs and complete an annual tax return, unless they indicate it is not required. If your Trustees buy and sell taxable assets, Capital Gains tax might also be relevant to your investments.
They will have to have Trustee meeting, how frequently will depend on the kind of Trust, which will have to be minuted. The Trustees must keep a record of their decisions and the transactions of the Trust Fund.
It might save you having to apply for probate on your death, but the Trust will still need to be wound up and HM Revenue & Customs will need to close their file on the Trust. If you still retain an asset that requires a Grant of Probate, then your Executors might need to apply for Probate anyway.