A Trust is a legal arrangement where money and property are managed by a third party (trustee) on behalf of you, your family, or anyone else who you’d like to benefit (beneficiaries).
Creating a trust is rather like deciding the rules of a game e.g.
- You decide what money and property will be placed into the trust
- You decide who will manage the assets in the trust
- You decide who will benefit from the trust assets and in what way
Trustees often work with financial advisors to make sure trust assets are safely invested to provide income and/or capital growth. A plan is drawn up and decisions are made up around income and capital needs of beneficiaries. Income can either be paid to beneficiaries (if it is appropriate for them to receive it) or it can be retained in the trust.
Trustees need to (with the help of a suitably qualified financial advisor) manage the trust and ensure compliance with HMRC. We will work with you to ensure that assets in the trust are well managed and that all requirements are adhered to. We will also look at the tax efficiency of a trust to make sure that no unnecessary tax is being paid.