A Trust is a legal arrangement where one party gives assets to another person or entity to manage for the benefit of another individual or group.
Trusts can be an extremely useful estate planning tool and, if used properly, can be a highly effective and tax-efficient way of managing and protecting wealth.
However, Trusts are governed by complex legal regulations and separate tax rules, and it is crucial that they are set up correctly so that they function as they should.
At Muscatt Black Graf, our Trust lawyers provide specialist legal advice to settlors, trustees, protectors, beneficiaries, corporate trustees and charities on all aspects of Trust law, including wealth and tax planning and Trust arrangements.
We work closely with all our clients and consider their strategic aims to help create and operate Trust structures which best suit their needs, focusing on preserving and enhancing assets through tax and succession planning.
If you are looking for advice and guidance on Trusts and want to discuss your next steps, please email Muscatt Black Graf on contact@muscattblackgraf.com, or click here to fill in our online contact form.
Different Forms of Trust
There are many different types of Trust, and our experienced lawyers can advise on the most appropriate form of Trust for your purposes.
Some popular Trusts include:
Bare Trusts.
- What are Bare Trusts? Assets in a bare Trust are held in the name of a trustee on behalf of a specified beneficiary until they turn 18 (in England and Wales) or reach a specified age. At that point, the beneficiary is entitled to all the capital in the Trust and any income that has been received.
- When would you use a Bare Trust? This type of ‘fixed’ Trust is commonly used to make gifts to young people.
Discretionary Trusts.
- What are Discretionary Trusts? A discretionary Trust is one of the most flexible forms of Trust . Beneficiaries have no automatic right to receive funds from the Trust and all capital and income held in the Trust is allocated entirely at the discretion of the trustees.
- When would you use a Discretionary Trust? Discretionary Trusts are commonly set up in a Will though one can also be set up during your lifetime. They are useful for managing wealth across multiple generations as they enable you to name ‘potential’ beneficiaries including groups of people who haven’t been born yet, such as ‘grandchildren’.
Interest in Possession Trusts.
- What is an Interest in Possession Trust? In this form of Trust, trustees must pass on to the beneficiary (also known as the ‘life tenant’) any interest in the Trust as it arises. For example, someone could benefit from the income generated by shares, although they do not own the shares themselves, or could live in a property rent free, without owning the house itself.
- When would you use an Interest in Possession Trust? Interest in Possession Trusts are commonly used to provide income for a surviving spouse after a partner’s death.
Trusts Lawyers Marylebone
Trust law is complex, and specialist advice is vital.
At Muscatt Black Graf, our Trusts lawyers advise beneficiaries, trustees, and settlors on all aspects of Trust law, including:
- Trustees’ powers and duties.
- Tax planning issues.
- Helping beneficiaries.
- Winding up of Trust arrangements.
We also work on contentious matters and help clients resolve Trust disputes, whether you are a beneficiary or a trustee.
To speak to one of our experienced lawyers in Marylebone, please email Muscatt Black Graf on contact@muscattblackgraf.com, or click here to fill in our online contact form.
This blog was prepared on 5 February 2024. It is not intended to be advice and should not be relied upon as such.