Trusts come in a variety of different forms and each have their own specific uses. Typically, these can initially cause our client's confusion however in simple terms a trust is  designed to protect and manage a persons assets, and they give you the peace of mind that your estate can be passed on securely and intact to your spouse, your children and their bloodline, or other named beneficiaries, either before or after your death. There are many types of trusts, all of which provide solutions for different circumstances, these include; 

• Bare Trust

• Interest in Possession Trust

• Discretionary Trust

• Mixed Trust

• Trust for vulnerable people

• Non-resident Trust

They are made up from different people these involve:

• The ‘settlor’ - the person who puts assets into a trust

• The ‘trustee’ - the person who manages the trust

• The ‘beneficiary’ - the person who benefits from the trust

You can place different types of assets into a trust including Cash, Property, Shares and land. Trusts are set up for a number of reasons, including:

• To control and protect family assets

• When someone’s too young to handle their affairs

• When someone cannot handle their affairs because they are incapacitated

• To pass on assets while you are still alive

• To pass on assets when you die (a ‘will trust’)

A trust bypasses the time-consuming process of probate and assets can be managed without the need to wait for the ‘Grant of Probate’ from the Court. If the settlor wishes, the trustees do not have to wait for the settlor to die to provide assistance to the beneficiaries. They can see their beneficiaries benefit during their lifetime. You can place your assets in a trust to make sure your beneficiaries receive them at a time that’s right for you and for them. You have complete control and you decide on the trustees and what they can and cannot do.

This is beneficial if at some point in the future you are unable to manage your financial and legal affairs due to incapacity such as dementia. A Trust can also protect your share of assets for your children in the event that your partner should marry or co-habit after you have gone.

If you would like to learn more about this subject or require Independent Financial Advice from our local, experienced and friendly team, please feel free to contact us on 01788 57 11 22.

The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor. 

PJL Financial Services Limited are authorised and regulated by the Financial Conduct Authority. 

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