Family Trusts

There are many reasons to set up family trusts as part of your estate planning. You can use family trusts to control how you pass on your wealth to your family. There are many types of trusts that can be used in estate planning. The type of trust that you use will depend on what you are trying to achieve, for example:

  • Discretionary Trusts: You can use this type of trust to provide for children or your children and grandchildren in such a way that the trustees have discretion and control over who gets what share and when. This gives ultimate flexibility and also protects the trust assets from any of the beneficiaries or their creditors.
  • Interest in Possession Trusts: You could use this type of trust to provide income for your adult children whilst protecting the capital for your grandchildren.
  • Protective Trusts: You might be concerned about your children’s marriage. You can use this type of trust to protect both the income and the capital of the trust funds or assets from their divorce or even their creditors if their financial situation is uncertain.
  • Disabled Persons’ Trusts: You may wish to provide for a disabled relative in such a way that the means-tested benefits that the person is receiving will not be affected by your gift.
  • Life Policy Trusts: If you have life policies they can be written in trust so that the proceeds do not form part of your estate for inheritance tax.
  • Personal Injury Trusts: If you are expecting to receive a personal injury award you can set up a personal injury trust so that your disability benefits are not affected by the award.
  • Declarations of Trusts: You should have one of these whenever you co-own property with others in shares that are unequal. This will allow you to say who owns what share in the property and how the property should be dealt with in the event of the death of one of the co-owners, or on sale or other events such as separation.
  • Pension Policy Spousal Bypass Trusts: This is a useful way of providing for your spouse to enjoy any death in service benefits that you may be entitled to but without the proceeds forming part of his/her estate.

There are other types of trusts for other purposes. We can advise you on the trust that best achieves your objectives tax-efficiently.

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Charitable Trusts

It may be that you wish to raise funds for a particular cause, or you wish to donate money to set up a new charity. We can set up a Charitable Trust for that purpose. This will ensure that the charity receives all the tax breaks that are available so that the money you raise or donate can go to the charity’s causes.

Offshore Trusts

If you are a foreign national or if you live abroad, have lived abroad or are going to live abroad, we can help with organising your affairs to achieve the best tax consequences. There are trusts that could, depending on your circumstances, enable you to exclude some or all of your assets in the UK from inheritance tax liability in the United Kingdom.

Trust Administration

When you are setting up a family trust as part of your estate planning strategy you should consider the question of trustees very carefully. Trustees have very important legal obligations and it may not be fair to put that burden on family members. We offer a trust administration service for those who wish to appoint a professional trustee. As part of our trust administration service, we will deal with all the distributions of the trust funds to beneficiaries, investment of the trust funds, filing trustee accounts with the Inland Revenue and keeping minutes of the trustee meetings.

Trustee Services

We have long-term experience in creating and managing trusts and giving legal advice to trustees. We advise trustees on all aspects of trust administration including:

  • appointment and retirement of trustees
  • choice of trustees
  • ensuring corporate trustees have the appropriate powers to act
  • powers and duties of trustees generally
  • dealing with trust assets including exercising powers of appointment
  • variation of trusts
  • trust accounts
  • taxation and achieving tax efficiency when making distributions
  • securing and maximising business and agricultural property relief
  • trust litigation, including defending actions by beneficiaries against trustees

For those wishing to set up new trusts whether from new funds or from current trust assets we are on hand to give advice on the most suitable kind of trust for the circumstances. Among the trusts we create and manage for clients are:

  • Discretionary Trusts
  • Interest in Possession Trusts
  • Protective Trusts
  • Disabled Trusts
  • Life Policy Trusts
  • Personal Injury Trusts
  • Declarations of Trusts
  • Charitable Trusts
  • Offshore Trusts

Get in touch to book an appointment to attend one of my weekly surgeries in London. It’s free and there is no obligation.

Sign up to our mailing list for regular estate planning tips and updates.

Best wishes

Remi Aiyela