Setting up a Trust
A trust provides protection of assets for the benefit of loved ones once you have gone. It is a way of managing your assets (money, investments, land or property) for people after your death.
When might I want to use a Trust?
There are various types of trusts but most commonly a trust is set up for children who are too young to handle their affairs, or for a beneficiary who may be incapacitated.
You might set up a trust to support someone who cannot manage their money – so their needs are looked after, even when you are not able to help them. A trust can be especially useful if you have a child with a mental health condition or learning disability, and you are worried about how they will manage financially after you die.
The benefit payments can be made to the trustees, who will use them according to the rules of the trust.
Wills & Probate Services
Types of Trusts:
- Bare Trust – A trustee would be appointed to look after assets until such time that a child is old enough, usually attaining the age of 18 years old.
- Interest in Possession Trust - The beneficiary does not control the assets within the trust but can get income from the trust straight away, but must pay income tax on the money they receive.
- Discretionary Trust - The trustees have complete control over the assets and the income they generate, deciding how and when to give them to the beneficiaries.
- Mixed Trust - combination of elements from different trusts.
- Living Trust - If you lose mental capacity assets held within the Trust will then be managed by your Trustees on your behalf.
Contact Us
The legal wording of a trust needs to be precise, so it is vital to ask a solicitor to set it up. We at JW Hughes & Co. have a wealth of experience in setting up trusts. If you are interested in setting up a trust to protect your assets for your loved ones, contact us today for more information.
Our people
Our experienced team of Solicitors can help you.
Rhys Lewis
Alaw Pari
Joshua Lloyd
Anna Wilkes
FAQ's
Choosing your trustees
You have to choose people to be your trustees, usually family members or close friends who you know you can rely on. Think carefully about who to ask, and make sure that they are happy to take on the responsibility. You should have at least two trustees, but probably no more than three or four. You can appoint a company as your trustee, such as a bank or firm of solicitors, but bear in mind they will charge you for this.