There are many well-known trusts that you may be aware of, National Trust, NHS Foundation Trusts, and the Princes Trust. History and English law show that the use of a trust can be particularly useful. People assume a trust is used by the wealthy, but they can be used to help you and your circumstances.
What is a Trust?
A trust is a legal document that is set up to ensure that your wishes are carried out. This legal document provides you with certainty that the people you instruct to deal with your assets will do so. You would appoint people to be in control of the trust (Trustees), you decide what assets they are in control of (trust assets) and you decide who may benefit from this and when, (your grandchild at 18).
Why is it important?
A trust can be a complicated document and may present various risks to you. You may be aware of the assets you wish to transfer and who is to benefit but you must ensure that you are in the best position from an inheritance tax, capital gains tax and income tax position. In addition to this you must be aware of any potential claims that may be made against the Trustees.
There are several types of trusts, and you must be aware of the risks before choosing which type to proceed with.
