Trusts can help you make the most of your wealth. Whether to preserve your assets or to tax-efficiently leave inheritance to your loved ones, you are in safe hands with our specialist trust solicitors.
At Frettens, we can talk you through your trust options and help you make an informed decision about how to approach your estate planning. Our advice is always practical, comprehensive, but simple to understand.
Free initial appointment for all new clients
Why choose our trust solicitors?
Our Wills, trusts and probate team have specific expertise helping individuals set up and manage trusts. We will establish your goals quickly, getting to know your individual circumstances so we can tailor our advice to achieve the best possible outcome for you. Previous experience includes helping people to:
- Pass on money and property to the next generation
- Reduce Inheritance Tax
- Provide for young children or vulnerable family members
- Set aside money for children from a previous relationship
- Provide for your own care
We can also provide advice to trustees about your role and responsibilities in managing a trust and to beneficiaries about your entitlements under a trust.
Our skilled team includes Wills & Tax Partner, Lee Young, a full member of STEP (the Society of Trust & Estate Practitioners). Our team also includes Shauna Lines, who has nearly 30 years’ experience specialising in Wills, trusts and probate and Heather Varley, who is a member of Solicitors for the Elderly. Lee and the team are highly recommended by the Legal 500, a directory of the top regional and national law firms.
Ask us at Frettens
What is a trust?
A trust is a legal document that can be used to appoint someone to hold and manage assets (such as money, property, or shares) for someone else. The people involved in a trust are:
- The settlor – the person who creates the trust and transfers the assets to be held for someone else.
- The trustee(s) – this is the individual(s) who become the legal owners of the assets which they will hold for the benefit for someone else.
- The beneficiary (or beneficiaries) – this is the individual(s) for whom the trustees hold the assets.
Although the trustees become the legal owners of the assets, they are legally responsible for holding them in line with the terms of the trust and in the best interests of the beneficiaries. Therefore, as settlor, you have considerable control over how the assets should be managed.
Why set up a trust?
There are many reasons you may want to set up a trust, but common reasons include:
To minimise Inheritance Tax
- To provide for your children, particularly those under 18 years old
- To safeguard and provide for vulnerable family members
- To set aside money for your care
- To pay for your children or grandchildren’s education
- To protect and manage personal injury compensation
What types of trust are there?
There are many types of trust available, all offering different benefits depending on the purpose you need them for. For example:
- Bare trusts – this is the simplest type of trust. You transfer assets to trustees who hold it on trust for a specific beneficiary. Once the beneficiary is at least 18 years old, they are entitled to everything in the trust straight away.
- Discretionary trust – this type of trust gives the trustees the power to choose how the assets will be distributed between a specified class of beneficiaries. As settlor, you can leave a letter of wishes setting out your instructions for the trustees about how they should use their power.
- Interest in possession trust – the beneficiary is entitled to any income produced by the trust, but they do not have access to the property or investments that generate the income.
- Personal injury trust – you can set up this kind of trust to hold compensation you received from a personal injury claim. By putting this money in a trust, you can avoid losing any state benefits to which you are entitled.
Can a trust reduce Inheritance Tax?
You may be able to reduce your liability for Inheritance Tax after you die by using trusts. When you set up a trust, you transfer the legal ownership of certain assets to someone else. This means that after you die the trust assets will not usually be considered part of your estate so will not attract Inheritance Tax.
If you would like more information, we offer a dedicated Tax Planning service.