Will Trust Administration
Wherever someone holds money or property on behalf of someone a trust will be created.
In very simple terms a trustee is similar to a bank manager and the trust is the bank account. The money placed in the bank account is the asset being held on trust. The trustee’s powers in respect of the trust asset (i.e. the bank manager’s power over the money held in the bank account) is governed by the document creating the trust (the trust deed) and also by statute.
The trustee is the legal owner of the trust fund however the assets in the fund will ultimately be for the benefit of the beneficiaries of the trust. Trustees are duty bound at all times to put the interests of the beneficiaries before their own.
Most people come into contact with the concept of a trust when writing their Will or when they are named as a beneficiary of a trust fund set-up within a Will. These trusts are called “Will Trusts”.
The primary reasons individuals set up Will Trusts is to guard against various factors such as:
- Seeking to ensure that a beneficiary’s state benefits are not taken away or refused upon that beneficiary inheriting money in future;
- Care costs;
- Inheritance Tax planning and other potential tax savings;
- the preservation of assets for those who are too young and incapable of managing money for themselves (i.e. to protect the inheritance of young children until they are old enough to take responsibility for their own affairs);
- To account for unborn beneficiaries – such as future grandchildren;
- Re-marriage and the need to protect the respective couple’s children from a first marriage/civil partnership;
- Simply to retain control through Trustees.
At Eric Robinson Solicitors our expert team can advise you on the type of trust which will benefit and protect you and your family’s current and future interests, taking account of tax.
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