If you are looking to start planning for your estate or if you have been named as a beneficiary, it is important to understand trusts.
What is a trust?
A trust is a legal arrangement for managing assets. It is important to consider that different types of trusts as they are taxed and operated differently.
A trust can include many different assets such as money, property, land or shares.
Why might a trust be set up?
A trust can be set up for a range of reasons. This includes when a beneficiary is too young to handle their affairs, to protect family assets, or if someone dies without a will.
Who handles a trust?
There are a number of people involved in a trust.
Firstly, there’s the settlor. This is the person that decides how the assets in a trust should be used. This person may also benefit from the trust.
There is also the trustee(s), who must ensure the assets are dealt with according to the settlor’s wishes. They are also responsible for paying tax on the trust and abiding by strict trustee rules and legislation.
Finally, there are the beneficiaries. There may be one or more beneficiaries, these are the people who will benefit from the income or capital of the trust.
How to set up a trust
If you are interested in setting up a trust or need advice on a trust, you should seek advice from a solicitor.
If you need advice on related matters, contact us today.
Mander Hadley Solicitors is not only a long established firm, but is vibrant and successful, with a forward thinking approach.
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