Overview

Trusts Funds

There are many advantages to be gained from setting up a Trust Fund, from preserving your assets to saving on Inheritance Tax.

A Trust can be set up during your lifetime or be included in your Will, and you can choose two or more Trustees who will look after any money, property, shares or assets you have included.

The Wills, Trusts and Probate team at Jackson Lees Solicitors can help you with this process, assisting with the set-up and administration of your Trust, explaining how it works and acting as professional Trustees.

How Trusts can help

The most important aspect of a Trust Fund is that you can ensure your money goes towards providing a stable future for your loved ones. Trusts are a convenient vehicle for saving tax, as they are taxed separately from Income Tax, Capital Gains Tax and Inheritance Tax.

By placing your money in a Trust Fund, the Trustees control what happens to it and in some cases they can preserve assets for future generations.

Types of Trust Fund

There are a number of different kinds of Trust, and you are free to decide which one you want to use and which best suits your needs. If you are unsure of which will be most beneficial for your circumstances, our experienced team are more than happy to advise you. The most common Trusts we deal with are:

Discretionary Trusts

These are used in many different situations however, they are commonly used to provide income or access to capital for a disabled beneficiary, or to preserve assets for future generations whilst allowing a surviving spouse to benefit from them during their lifetime.

You appoint who you want to act as Trustees and you can, by a Letter of Wishes, stipulate how you would like your Trustees to manage the assets in the Trust. As a beneficiary of a Discretionary Trust can only benefit from the Trust Fund at the absolute discretion of the Trustees, the assets held by the Trust do not form part of their estate and can therefore be excluded from any means tested assessments.

Bare Trusts

Often used to pass money onto minor beneficiaries, a Bare Trust will ensure your chosen beneficiary gains direct access to the contents of the Trust on the day they turn 18. You can appoint Trustees to look after your assets in the meantime.

Life Interest Trusts

Also known as Immediate Post Death Interest Trusts, they grant the named beneficiary, also known as the Life Tenant, a right to benefit from the assets held the Trustees during their lifetime. This can include a right to occupy a property or to receive income from the Trust with the potential to receive capital at the discretion of the Trustees.

Crucially, the Trust can state where the assets should go following the death of the Life Tenant, so for example you could leave all or part of your Estate on a Life Interest Trust naming your spouse as the sole beneficiary but direct that upon their death the assets still held by the Trustees be paid to your children.  This can be particularly helpful for clients with families from previous relationships.

Personal Injury Trusts

If you are due to receive a Personal Injury award and are worried that this will affect your eligibility for any state benefits you have been receiving, you can place the money into a Personal Injury Trust. This can potentially mean that your compensation is not taken into account when calculating the benefits you are due.

Our Court of Protection team are best placed to help with this particular issue.

Contact Jackson Lees solicitors

If you would like advice on which Trust Fund would be best for you, or if you need practical help with the Administration of your Trust, call Jackson Lees Solicitors today on 0151 282 1700 or fill in the enquiry form and our experienced team will be glad to assist you.