A trust is a legal agreement in which a person (the ‘trustee’) has agreed to look after the assets (‘property’) of a second person (the ‘settlor’) for the benefit of a third person (the ‘beneficiary’).

Example: Steven has given Kaylie £50 to look after for her son James. By doing this, a trust has been set up with Steven as the settlor, Kylie as a trustee and James as a beneficiary. {This would be an Absolute Trust.)

On the other hand, Steve, could have given Kylie £100 for James, Tony and Shirley – and be told to distribute the monies as she saw fit. {This would be a Discretionary Trust.)

Or possibly Steve gives Kylie £10,000 to enable James to enjoy an income of £500 per annum for say 15 years, then any balance is to be split between Tony and Shirley. (This would be an Interest in Possession Trust.)

Our trust solution frameworks

These frequently use discretionary pilot trusts that are established during the person’s lifetime with a £10 trust fund. This allows all our trusts to be used by clients during their lifetime and provides a greater level of flexibility. These trusts hand a lot of power to the trustees. The trustees’ discretion is used to decide how the trust is run, how to use the trust’s income and even to decide how the assets in the trust are distributed.

We highly recommend a Letter of Wishes is put in place alongside the trust. This provides guidance to the trustees regarding how the settlor would like the trust assets to be handled.

Find out more

To download our FREE guide on Tax and Trust Planning click here

Clients throughout Berkshire have benefitted from our trust advisory services and we can help you as well. For a free, no-obligation initial discussion, just call 0118 034 7920 or contact us

Free Educational Seminars

We are holding these on the following dates:

  • Hartley Wintney – Wednesday 13th February
  • Oakley Court, Windsor – Wednesday 27th February
  • CIM Moor Hall – Tuesday 19th March
  • Holiday Inn Winnersh, – Wednesday 24th April

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