Trusts Protect Your Assets
We often imagine that managing wealth is a leisurely stroll in the park. It's not all about sipping champagne on yachts; there's a whole world of trust law, succession planning and asset protection to navigate. That's where professional trust lawyers and solicitors come into play.
We can help you with various trusts, from setting up a trust to help reduce the amount of inheritance tax your children or grandchildren may be liable to pay should you die. A deed of trust or declaration of trust sets out the percentage you own in a property that protects your interest and/or investment in the property.
At RG Law, we have an accomplished group of specialist lawyers who can help you manage your assets. We have the experience required to work closely with all our clients to help advise trustees on charitable trusts, estate trusts, and lifetime trust assets.
Whether it's managing wealth, property protection trusts, funding education, or protecting assets from creditors, trusts are a versatile tool and at RG Law, we're dedicated to helping you understand their full potential and relevance in the 21st century.
Trusts are essentially a way of controlling money, investments, land or property for the benefit of specific people. They're not just for the super-rich; trust law can be an effective part of anyone's estate planning.
At their core, trusts involve three parties - the settlor who establishes the trust by settling trust assets into it, trustees who manage those assets according to instructions given by the settlor, and beneficiaries who receive benefits from these assets.
Depending on your individual needs and circumstances, trusts can be set up during your lifetime or as part of your will after death.
Trusts aren't just about passing on wealth; they also offer ways to reduce inheritance tax payments and provide asset protection against future risks such as insolvency or divorce settlements.
Now that you've got some insight into what trust law entails and how it might fit into your personal estate, let's delve deeper into establishing a trust with RG Law.
Establishing a Trust
Setting up a secure future for your loved ones doesn't have to be complicated – RG Law's experienced team can guide you through the process of establishing a legal arrangement that acts as a financial safety net.
Trusts are an excellent way to manage and protect your wealth, ensuring that it benefits those you care about most.
RG Law's professional trust lawyers will help you set up a trust tailored to your unique needs. Whether you want to fund education, provide for vulnerable family members, or shield assets from creditors, we've got you covered. Our expertise extends beyond simply drafting trust documentation - we also offer advice on bank loan documentation and can even administer trust assets if needed.
Remember, setting up a trust is more than just securing your own wealth. It's about taking steps towards creating stability and security for those who matter most in your life.
Ready to explore this further? Let's delve deeper into the different types of trusts available with RG Law by your side!
Types of Trusts
Under this type of trust, the trustees can decide how the trust will be managed in terms of how the income and/ or capital will be used. The trustee(s) can make decisions regarding how much is paid, how often and if there are any restrictions on the beneficiaries.
Deed of Trust/Declaration of Trust
A deed of trust is a legally binding document that outlines the monies paid and in what proportions to purchase a property. It is important to decide whether you are tenants in common or joint tenants when you purchase a property with another person.
Assets that are held in a bare trust are in the name of the trustees until the beneficiary is 18 years of age. This type of trust is designed to hold assets in trust until the beneficiary is old enough to take control.
Interest in Possession Trusts
This type of trust requires the trustee to transfer the income generated by the trust to the beneficiary. The capital in the trust may not be for the named beneficiary benefiting from the trust's income. Depending on how the trust has been drawn up, the capital, i.e., shares, could be passed to someone else.
Considerations when setting up a trust:
A trust can play a supportive role in looking after the assets inherited by your children and or grandchildren until they can take complete control of the assets they have inherited.
Property protection Trust
Parental trust for children
Trusts and income tax
Trusts for vulnerable people
Trusts and inheritance tax
Joint tenants and tenants in common:
Joint tenants means that the property is owned by both of you
Tenants in common means that you own a share of the property, which could relate to the amount of money invested and, therefore could be in unequal portions. If you are a joint tenant, your share of the property will pass to the other property owner should you die. If you are tenants in common, then you could ensure that your share of the property is left to whomever you wish.
Frequently Asked Questions on Trusts
What are the potential risks or drawbacks of setting up a trust?"
Like any endeavour, setting up a trust isn't without its pitfalls. You could face complexities in management, potential tax implications, lack of flexibility once established and possible conflict among beneficiaries about the distribution of assets.
How are disputes between beneficiaries and trustees handled?"
When disputes arise between beneficiaries and trustees, seeking legal advice is crucial. A Lawyer or solicitor can help mediate or litigate the issue, ensuring fair treatment for all parties involved and preserving the integrity of the trust.
Can a trust be dissolved or modified after it has been set up?"
Yes, a trust can be dissolved or modified after it's been set up. This usually requires agreement from the trustees and beneficiaries, but certain circumstances might allow changes without everyone's consent.
What are the legal obligations and responsibilities of a trustee?"
"Ever wondered about your role as a trustee? You're legally obliged to manage the trust's assets responsibly, act in the beneficiaries' best interest, follow the settlor's instructions, and maintain accurate accounts. It's quite a responsibility!"
Are there any special considerations for trusts involving international assets or beneficiaries?"
Yes, international trusts require special considerations. You must consider different tax laws, legal systems, and potential exchange rate fluctuations. It's crucial to understand any implications for both the assets and beneficiaries involved.