A trust is a legal arrangement for managing assets. There are different types of trusts and they are taxed differently.
In a trust, assets are held and managed by one person or people (the trustee) to benefit another person or people (the beneficiary). The person providing the assets is called the settlor.
Different kinds of assets can be put in trust, including:
Trusts are set up for a number of reasons, including:
- to control and protect family assets
- when a beneficiary is too young to handle their affairs
- when someone cannot handle their affairs because they’re incapacitated
- to pass on assets while a settlor is still alive
- to pass on assets when a settlor dies (a ‘will trust’)
- under the rules of inheritance if someone dies without a will (in England and Wales)
Long Term Care
If you need long-term care and you benefit from a trust, your local authority will take this into account when assessing your circumstances.
If you’re entitled to the income of a trust only, the capital (lump sum) will not be considered
You may be able to put your property in trust before going into care, so it’s not considered to be owned by you and is not used to fund your care. However, your local authority may challenge this if it can show that your main reason for putting the property in trust was to avoid care costs.
Always get advice from a Solicitor before putting your property in trust.
Setting Up a Trust
Trusts can be set up at any time (in a special document called a “trust deed”) or written into your will.
Brewer Wallace can help you set up a trust.
We can guide you through setting out:
- what the assets are
- who the trustee and beneficiary are
- when the trust becomes active
- how to word and execute the “trust deed” in a legally valid and enforceable manner
Brewer Wallace are specialist legal professionals who have many years experience in this area of work.
Please give us a call on 01482 221130 or 01924 537856 for a free, no obligation, quote.