Published on: 5th July 2021

Trusts Explained

Many people do not know about or concern themselves with trusts as they are regularly viewed as something that only the wealthy need to use. However, this is certainly not the case. Trusts can be beneficial for many people and can be extremely varied in purpose.

In short, trusts are a way of managing and transferring assets to a small group of people. ‘Assets’ refers to anything that you own which can be property, shares, and cash.

Who is involved?

Settlor(s) - the person(s) putting assets into trust.

Trustee(s) - the person(s) who manage the trust; they become the legal owners of the assets in trust.

Beneficiary(ries) - the person(s) who benefits from the trust.

The details of who each of these individuals are as well as the assets placed in the trust are usually explained in a ‘trust deed’ or ‘declaration of trust’. These documents will explain the purpose of the trust that has been established.

Why set up a trust?

Trusts can be set up for multiple reasons. Some of these include:

• To protect family assets such as property.
  
  
• For someone who is too young to handle the assets.
  
  
• When someone cannot handle the assets because of incapacity.
  
  
• To pass on assets when you die.
  
  
• and many more!
  
  

In Summary

Trusts can be extremely useful in Estate Planning. Determining how money and assets are passed between generations is important, especially for families that have dealt with divorce and second marriages. In these situations, trusts can be used to ensure assets are kept within the family. Trusts can be a great method to secure family assets and ensure financial security between generations. Trusts can also be used to exempt an asset from long-term care fees assessment. This helps to retain an asset such as property for future generations.

At Casey & Associates, we can use trusts to maximise Inheritance Tax allowances, protect 50% of your family home from funding care fees, secure funds for a disabled or vulnerable family member, and more! Every person has their own wishes for what happens with their assets. We are here to discuss all options and determine if trusts can be beneficial to your Estate Planning.

If you think that trusts might be beneficial to you and your family in your journey in Estate Planning, please contact our experienced and friendly Client Services team by calling 01732 868190 or complete the contact form on our get in touch page.

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Our Covid-19 policy is now that if you wish to give instructions or require general information about our Wills, Lasting Powers of Attorney or Trusts then we will carry out a telephone or Zoom appointment. However, if you wish to give instructions to one of our Consultants and you feel that you can only do this at a Face to Face meeting we are offering, at our Consultant’s discretion, a limited number of Face to Face appointments in most of the areas we normally cover (subject to Government advice). To see the areas we normally cover please click here. To arrange an appointment please telephone 01732 868190 or click here.

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