How Trusts work

Settlors (the people who create the Trust by transferring property into the Trust) transfer assets into the Trust by way of gifting, or through the sale of assets. Trustees (the people responsible for managing the Trust) distribute the assets in the Trust, or income generated by the Trust, to the Beneficiaries (the people who benefit from the Trust relationship). 

Significant legal issues are involved in the formation of a Trust and transfer of assets to it. Therefore it is vital to take legal and financial advice from experienced specialists. Our team of Chartered Accountants and Business Advisors have been working with local families for more than 30 years, providing advice on Trust formation along with specialist Trust Review and Professional Trustee services. 

We work closely with a number of reputable legal advisors and can provide their contact details should you require further legal advice.

The definitive meaning of a trust is:

  • A legal relationship in which a person (the Trustee) holds an interest in property (like bank investments).
  • For the benefit of another person (the Beneficiary).
  • Or for the benefit of a specified object.
  • Or for the benefit of a specific purpose.
  • They are generally set up to protect assets and look after dependent people. They can have a valuable role to play, but they may not be suitable for everyone.

 

WHAT ARE THE BENEFITS OF A TRUST?

  • To protect assets from creditors.
  • To preserve value for future generations.
  • To protect assets from relationship property or family claims.
  • To protect assets from the Government.
  • To maximise any benefits you may be entitled to.
  • To facilitate the transfer of assets to beneficiaries upon death.