Trusts Law Solicitors specialising in setting up trusts in Milton Keynes

Milton Keynes based Heald Solicitors can advise you as to the type of trust that will be right for your situation and explain how it will work. Our trust solicitors have extensive expertise in all types of trust and will be happy to answer your questions and explain your options to you.

Why set up a trust?

A trust is managed by its trustees, who will use the money in the way specified when it is set up. This means that the funds in the trust are under the control of the trustees, not the beneficiaries. A trust can be used to provide an income for someone who cannot manage their own affairs or who lacks the capacity or maturity to deal with a large sum of money. A trust has the ability to protect assets being lost through bankruptcy or divorce.

A trust can also be used when you wish to give someone a life interest in an asset, for example, if you wish to leave your spouse a life interest in your share of your jointly owned home, but after their death you wish this to be passed on to your children.

In some circumstances, setting up a trust can also have tax advantages. It is important to take legal advice, to ensure that the structure you set up is as tax-efficient as possible.

Types of trust

There are many different types of trust, including:

Bare trusts

Bare trusts can help provide a simple degree of control in many situations. For example, they are often used for holding assets to benefit minors, with the beneficiaries able to access the funds personally once they reach the specified age and are sensible enough to use them properly.

Discretionary trusts

Discretionary trusts are useful in a wide range of circumstances, a discretionary trust can be set up in someone’s lifetime or in their Will and gives the trustees discretion to pay money to the beneficiaries as they see fit. This type of trust can be used to give trustees the power to distribute money as and when it is needed, to protect the means-tested benefit of a beneficiary, to protect funds from the bankruptcy or divorce of a beneficiary and to manage funds for someone who is unable to do this themselves or who is at risk of exploitation. They are useful in Wills where the estate is large enough, but the testator is unsure how to dispose of their estate, because they allow for flexible planning through the trust after death.

Life interest trusts or interest in possession trusts

Life interest trusts or interest in possession trusts give a beneficiary an interest for life, or other specified period, in an asset such as money or a property, to one person whilst protecting the capital for a different set of beneficiaries

Trusts for vulnerable children or adults

Trusts for vulnerable children or adults are very specialised trusts used to obtain special tax treatment and protect the capital for the benefit of the vulnerable person.

Asset protection trusts

Asset protection trusts are used when a beneficiary needs financial help, but should not have control of the assets personally, generally because of a financial threat from a third party or circumstances in their life. This might be, for example, from creditors, through a divorce, or because the beneficiary has an addiction problem.