A trust is a way of managing assets (money, investments, land or buildings) for people. There are different types of trusts and they are taxed differently. Trusts can be beneficial to protect your assets. Read More

How can a Trust help you?

Trusts are set up for a number of reasons, including:

• to control and protect family assets from third parties
• to hold assets for someone’s until they attain the age of 18
• to hold assets for someone who can’t manage their affairs because they’re mentally incapacitated
• to minimise inheritance tax by reducing the value of the estate. Some people may set up a trust during their lifetime and put their assets into a trust. Removing assets from your estate and placing them in a trust can mean that they will no longer be subject to inheritance tax.
• to provide for your spouse while keeping the estate intact to be passed to your children.
• to keep assets in your bloodline
• protect your assets from spend thrift family members who if they had full control may not spend it wisely!

You must think about the assets you wish to give to the trust. Once you give them to the trust they will no longer be yours. You must also select a minimum of two people known as your trustees to manage the trust. They must also follow the instructions you have given them in your Will or trust deed.

 

Understanding trusts and the tax implications and the on-going administration of trusts can prove complex for some. Here at Baches, we can explain these to you in more detail. To ensure peace of mind that the correct trust has been set up and the on-going administration of them is carried out correctly please contact our Private Client Team