Trusts are a popular way of protecting and managing assets, including money, investments and property, but making sure they are set up and managed effectively is essential. Our highly experienced solicitors can guide you through every step of creating and managing a trust, giving you complete peace of mind.
We can help you with various different types of trusts, including trusts for controlling family assets, trusts to provide for under-18s and those incapable of managing their own affairs, and trusts for passing on assets while you are still alive or in the event of your death. Our trusts team can talk you through all of the legal ins and outs in plain English, making sure you understand your choices so you can decide how to move forward with confidence.
Our trusts solicitors in Wakefield and Ossett have experience of setting up a variety of different types of trusts, meaning we can advise you on the best type of arrangement for your situation. Our expertise means we can make it as simple and stress-free as possible to set up a trust for you or a loved one, allowing you to plan for the future effectively.
Our legal services for setting up and managing trusts
Our trusts solicitors can help you set up a variety of different types of trusts, depending on your needs and circumstances.
Types of trusts
Bare trusts – The assets in the trust are managed by the trustees, but the beneficiary has the right to take possession of the assets at any time as long as they are 18 or over.
Interest in possession trusts – The trustees must pass all income from the trusts straight to the beneficiary as soon as the income is generated, although they can deduct reasonable expenses.
Discretionary trusts – The trustees can decide how to use the trust income and, depending on the trust deed, the capital. The Trustees may be able to accumulate income from the trust and add it to the capital, depending on the trust deed.
Trusts for the vulnerable - These are Trusts for individuals who must be either mentally or physically disabled or someone under 18 years of age who has lost a parent through death
Settlor-interested trusts – The settlor or their spouse/civil partner can benefit from the trust.
Who can benefit from a trust?
Trusts can be used to benefit a variety of people, however they are perhaps most commonly used for:
- Gifting money to under 18s who are too young to look after it
- Looking after someone with an illness or disability that means they are unable to manage their own affairs
- To provide for elderly and vulnerable people unable to manage their own affairs
- To manage certain types of compensation, such as personal injury compensation, so they do not affect your liability for state benefits
- To reduce personal tax liability
- To safeguard an inheritance for you family e.g. against the possibility of your spouse remarrying after your death
Common questions about trusts
How do you set up a trust fund?
A trust involves placing assets into the care of a third party or parties, known as the trustees. The assets or any income generated from them can then be used for the benefit of the people named as beneficiaries of the trust.
The person placing assets into the trust is known as the settlor and they and their solicitors will create a ‘trust deed’ setting our all of the details of the trust. The settlor can also be a beneficiary of the trust, but this will usually have tax implications that will need to be considered.
How much does it cost to set up a trust?
The cost of setting up a trust varies, so please get in touch to discuss a quote. While there is some expense involved in having a solicitor create a trust for you, this initial outlay is generally well worth the investment in terms of preventing future problems and making the trust as easy as possible to manage.
Who can be a trustee?
In general, anyone can become a trustee, but it is important to remember that this is a serious commitment that involves a lot of responsibility. It is also worth bearing in mind that the trustees will need to agree on the management of the trust, so you should give some consideration to what the relationship is likely to be like between the trustees you select.
Is it worth having a solicitor as a trustee?
Many people choose to appoint a solicitor as a trustee and this can be highly beneficial. A solicitor trustee will be able to give other trustees and the beneficiaries the benefit of their legal expertise, ensuring the trust is properly managed in accordance with the law. They also offer a neutral professional perspective in the event of any questions or disputes over the management of the trust.
Do you have to pay tax on money in a trust?
Different types of trusts have different tax implications, but reducing your tax burden is a common reason for setting up a trust and they can offer a number of advantages in this area. It is the responsibility of the trustees to ensure any relevant taxes are paid, including Income Tax, Capital Gains Tax and Inheritance Tax, so it is important for both settlors setting up a trust and trustees managing a trust to have expert legal advice on these matters.
What happens to a trust when someone dies?
What happens when the settlor or a trustee or beneficiary of a trust dies will depend on the type of trust. We will be happy to advise you on how this applies to the type of trust you wish to create and what, if any, additional steps you may need to take to protect your loved ones.
Why choose Thornton Jones’ trusts solicitors in West Yorkshire?
Our trusts and estates solicitors are highly experienced with specialist training in the creating and management of trusts. Our team includes a qualified Trusts and Estates practitioner and member of Solicitors for the Elderly, ensuring we have the skills and sensitive, practical approach you need to manage your legal affairs.
Every Thornton Jones client receives the support and attention of a senior member of our team – a service most larger firms cannot match. As a result, our team can guarantee you the very best expertise and client care, helping you to quickly and efficiently find the right legal options for you and your loved ones.
Thornton Jones is accredited by the Law Society for Family Law and Wills & Inheritance Quality, reflecting our expertise in these areas. We are also accredited by the Law Society’s Conveyancing Quality Scheme (CQS) meaning you can rely on us to effectively handle any property transactions involved in setting up or managing your trust.