Trusts can help you…

Direct your client’s wealth to where they want it to go
Protect it from third party claims
Reduce or remove Inheritance Tax liabiity

What are Trusts?

Simply put, Trusts are a legal agreement.

One person agrees to look after the property of another person to benefit a third person.

Take Karen, she has agreed to look after £50 from John that he would eventually like to give to Peter, Karen’s son.

Doing this sets up a Trust.

There are three parts to a Trust…

The Settlor – is the person setting up the Trust and putting the property, or assets, into it.

The Trustees – are the owners of the property in the trust, and are legally responsible for looking after the property and distributing it for a particular purpose – such as a loan, gift or income to the beneficiaries.

The Beneficiary – is the person or people who benefit from the property held in trust.

As the property put into Trust is owned by the Trust, it isn’t included in the estate of the person benefitting from it. So, the £50 that John would like to give Peter is owned by the Trust and therefore can’t be attributed to, or counted as part of, Peter’s wealth. Karen, as Trustee of the Trust, can decide when and how to give Peter the £50.

To find out more, sign up to our no fee Trust Solutions Workshop.