Trusts

A trust allows you to transfer assets to others, either while you are alive or after your death.

Trusts are not just for the very rich. They can help you achieve a wide range of aims, such as:

• Giving others an interest in your assets but retaining control of them while you live
  Minimising the tax you or your beneficiaries have to pay • Ensuring the benefits of your assets flow to your beneficiaries as you intended
• Protecting beneficiaries from claims by others such as former partners or debt collectors
• Leaving your assets for the benefit of someone who is not capable of looking after them, such as a child
• Preventing beneficiaries from making unacceptable use of your assets
• Setting up long-term management of property on behalf of beneficiaries

There are various kinds of trusts including:

• Inter vivos trusts, or “living trusts,” that take effect while you are still alive • Testamentary trusts that take effect after death
• Discretionary trusts that allow a trustee to decide which beneficiaries receive what, and when
• Charitable trusts giving your assets to a charity

Trusts are often set up for families, but can also involve other people, such as friends.

When you set up a trust, you must appoint a trustee or group of trustees to manage it. Trustees may have great power over your estate. You must be able to depend on them to act in line with your intentions, and to be diligent in keeping the trust’s financial records in order.

A trustee could be a family member, friend, lawyer, accountant, trustee company or public trustee. People often appoint family members or friends. However in some cases a potential conflict of interest among them may create problems. An alternative is to appoint a professional such as an accountant or public trustee company, but this may involve large fees.

Turner Freeman are experts at setting up trusts. Our team can help you make decisions on whether you need a trust, which type is best for you, and who to appoint as trustee. If it suits your circumstances, you can also appoint one of Turner Freeman’s partners to act as a trustee for you, so you can:

• Ensure your assets are managed professionally, in line with your wishes
• Ensure your beneficiaries will deal with a supportive, responsible trustee
• Make substantial savings on trust management fees