Trusts

What is a Trust?

A trust is a way of putting aside something of value (the asset) for the benefit of others (the beneficiaries). The trust will prevent the asset being used for any other purpose.

Reasons for placing property in trust rather than holding on to the property personally include

To provide for someone who does not have the legal capacity for ownership because they are too young or disabled

To retain control of the destination and management of family assets, particularly estates and businesses, while at the same time transferring beneficial ownership

To protect the beneficiaries from their own lack of maturity where there is fear of dissipation of assets

The tax savings that will or may result

The wish to give away assets but retain flexibility over their ultimate distribution among the beneficiaries

Likewise, reasons for placing money in trusts are

• To provide income in the future for someone
• A tax efficient way to save to provide funds in the future (ie for further education for a child)
• To ensure that the beneficiary does not waste money through immaturity (ie can only obtain funds after 25th birthday)
• To receive an income but to protect the capital for beneficiaries in the future

At Godsons, we can help with

• The preparation of all types of trusts
• The administration of all types of trusts
• Advice to trustees