ESTATE PLANNING – TRUSTS

A Trust is an entity where the Settlor (the person who creates the Trust) arranges to put assets into it either immediately or at a future point in time, normally as a result of an event – their death. Another very important component to a Trust are Trustees. These can be individuals, companies or professionals who are normally appointed by the Settlor to look after the Trust assets for the benefit of the Beneficiaries. Beneficiaries of the Trust are also selected by the Settlor. It is common to arrange a non-binding letter of wishes created by the Settlor to guide the Trustees what they wish them to do in certain events.

There are many different reasons for putting something into a Trust and many different types of Trust.

A Trust can be an effective tool to save Inheritance Tax whilst keeping control of an asset for the benefit of the beneficiaries who may be minors. A Trust is also capable of advancing funds (normally in a few weeks) to pay Inheritance Tax.

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Trusts are not regulated by the Financial Conduct Authority.