Trust Creation and Administration
The Private Client Team at Seddons act for a number of families and wealthy individuals who wish to pass on wealth from one generation to the next but wish to retain control of certain assets. One of the most effective ways to ensure that assets are protected whilst maintaining a degree of flexibility is to establish a trust.
There are a number of different assets that are capable of being managed by a trust including money, land and other investments and we have vast experience in advising which type of trust structure is most suitable for which asset.
The main types of trust we advise on are:
- Bare Trusts – where assets are held by a trustee for a beneficiary, usually to young people until reaching the age of 18;
- Life Interest Trusts – mainly used by spouses to ring fence and protect assets for the next generation whilst giving a spouse the ability to benefit from the trust assets during their lifetime;
- Discretionary Trusts – this gives the trustees more discretion on deciding what capital is paid out of the trust, to which beneficiary, how often and if there are any conditions on how to use the capital ;
- Trusts for disabled or vulnerable beneficiaries;
- Charitable Trusts; and
- Declarations of Trust concerning the legal and beneficial ownership of property or land.
There are a number of reasons that individuals chose to set up trusts including:
- To protect assets and provide future security for future generations;
- To reduce tax liability – income tax, capital gains tax and inheritance tax;
- To assist persons who are not responsible enough to deal with assets themselves, or if they have capacity issues; and
- To protect personal and family property if the beneficiaries are too young, either through a lifetime trust or when someone dies through their Will.
We offer practical advice on setting up the trust, the ongoing administration of trusts, payment of any tax and reporting to HM Revenue & Customs, capital appointments to beneficiaries and advising trustees on their powers and responsibilities under the trust.