Creating and Administering Trusts
Bright Solicitors provides expert legal advice on creating and administering trusts, offering tailored solutions to safeguard your assets and plan for the future.
What Are Trusts?
A trust is a legal arrangement where assets are held by one party (the trustee) for the benefit of another (the beneficiary). Trusts can be an effective tool for:
- Protecting assets for future generations.
- Reducing inheritance tax liabilities.
- Managing funds for vulnerable individuals.
Why Choose Us?
Bright Solicitors offers exceptional legal expertise for the creation and administration of trusts:
- Specialist Knowledge: Our Private Client team has extensive experience in trust creation and administration.
- Tailored Advice: We take the time to understand your unique needs and provide bespoke solutions.
- Transparent Pricing: Our Trust Lawyers will provide upfront, transparent pricing with no hidden extras.
- Comprehensive Support: From creation to ongoing management, we’re with you every step of the way.
The prestigious Legal 500 has awarded Bright Solicitors with an outstanding client service award, showcasing our commitment to excellent service across all areas of our firm.
Trust Lawyers | Our Expertise
Our experience spans a variety of trust-related matters, including:
- Establishing discretionary, life interest, and bare trusts to suit individual needs.
- Administering trusts in compliance with legal obligations.
- Offering legal guidance to trustees on their roles and responsibilities.
- Advising on charitable trusts for philanthropic purposes.
Get in Touch
For expert legal advice with the creation and administration of trusts, contact Bright Solicitors. Our experienced team of Trust Lawyers will guide you through the process and help you achieve the best possible outcome.
Call us at 01752 388883 or Email us at PrivateClient@brightllp.co.uk to arrange a consultation.
Different Types of Trusts
What Is a Will Trust?
A Will Trust is a trust created within a Will and comes into effect on the death of the testator. These trusts are commonly used by married couples and civil partners for various reasons.
Protecting Assets Against Care Home Fees
Will Trusts can be used to safeguard assets against potential care home fees. For instance, by placing a Trust in your Will, you can secure your half share of the property. If the surviving spouse or civil partner enters long-term care, the Local Authority can only assess the other half of the property, reducing the financial burden.
Preventing Disinheritance
Will Trusts can also prevent disinheritance which occurs when the first spouse dies leaving children who may expect to inherit some of the family estate in the future. If the surviving spouse remarries and does not make provision for their children in a new Will, there’s a risk that everything will pass to their new spouse instead.
Using Discretionary Will Trusts
Discretionary Will Trusts are commonly used by people who are not able to decide, with any certainty, how to distribute their estates, when making a Will.
For more information about Discretionary Trusts which can be written into a Will, please see the Discretionary Trust Page.
These are often called Settlements and are established by a standalone document setting out in detail the terms on which the assets being put into trust are held.
Why Use Settlements?
Settlements are an effective way to transfer assets to the next generation in a protected and controlled manner. They allow the person establishing the trust (known as the settlor) to maintain control by appointing themselves as trustees.
Pilot Settlements: A Flexible Approach
A common practice is to establish a Pilot Settlement with a nominal cash sum, often as little as £10.00. Additional assets can be transferred to the trust over time, making it a flexible option for managing wealth.
Types of Trusts: Tailored Solutions
There are two main types of trusts that can be used in either a Will Trust or a Lifetime Settlement. These options can also include specific variations designed to benefit children or disabled beneficiaries, ensuring the trust meets unique family needs.
You can establish a life interest trust either during your lifetime or through your Will, where it is known as an immediate post-death interest (IPDI). This type of trust gives the beneficiary, called the “life tenant,” the right to receive income from the trust, typically for their lifetime. When the life tenant passes away, the trust fund goes to the nominated beneficiaries.
Trusts hold various types of assets, such as cash, investments, and property. For property, the right to income takes the form of the right to occupy that property.
A discretionary trust is a more flexible arrangement whereby a number of potential beneficiaries are named and the trustees decide who benefits from the trust from time to time usually guided by a separate note setting out the wishes of the person who establishes the trust.
Special Trusts
There are trusts that receive special tax treatment when established for bereaved minors by will or for the benefit of people who qualify as disabled.
For comprehensive advice about the use of trusts, please contact a member of our team.
If you would like to find out more information about Discretionary Trusts, click to read more. Alternatively, contact the team.
