What is a trust?

A Trust is what is known as a creature of equity. It is an unusual concept, in that a trust itself is not something that has legal personality, so it is not like a company which can sue, be sued, and carry its own legal liabilities and responsibilities.

A trust can be likened to a long term contract, and has three basic parties to it, the…

• Settlor(s),
• The Trustee(s).
• The Beneficiary(ies).

What does each party do?

• The Settlor gifts assets to the Trustees and charges them to look after those assets for the future benefit of certain persons (the Beneficiaries).
• The Trustees hold title to the assets they ‘supervise’, but are not permitted by the law to deal with them as if they were their own.
• The Beneficiaries as the term implies receive the benefits of the trust.

Once gifted, the assets no longer form part of the general estate (possessions) of the Settlor, whilst the beneficiaries do not own the assets; they are entitled to benefit from them.

What can trusts be used for?

Trusts have many different primary uses, and are exceptionally flexible vehicles for holding and protecting family assets or wealth. the following are some of their uses.

• Protection of assets.
• The transmission of wealth between generations.
• In some circumstances it can reduce the need or reduce the amount of inheritance or corporation tax that needs to be paid.
• It can assist in the maintenance of minors
• It can assist in the maintenance of persons who are incapacitated or incapable of looking after their own affairs.
• It can help avoidance of forced heirship provisions.

Some of the issues around trusts.

There has been a huge amount of publicity in the UK on the use of trusts, consisting of (in our opinion) a great deal of ill informed disinformation on the part of the Treasury, together with very robust and accurate rebuttal from various trade bodies.

The point that has not changed is that trusts have many potential uses, and a great many of your objectives may be achieved through their use. What has changed is the tax treatment of certain trusts. Our view is that your starting point is:

• “Is a trust the right vehicle to achieve my objectives?”
• “What is the cost?”
• “Am I prepared to pay that amount to achieve that objective?”

How we can help

• The services of a member of the Society of Trust and Estate Practitioners.
• The services of a professional who understands this very complex area.
• Consideration of the required services on a case by case basis.
• We will provide a detailed analysis and costing.

Our commitment to you

• The services of a professional and very experienced Trust and estate practitioner.
• The services will be tailor-made to suit your requirements.
• We will ensure that you meet the legal requirements in the relevant jurisdictions.
• We will provide the most cost effective solution.
• We will keep you informed at all stages of the process.
• We will provide an expert and professional service.
• Your best interests will be our first concern.