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Financial Products

• • Trust Instruments
• • Equity Trusts
• • Discresionary Trusts
• • Wills
• • GPA (general power of attorney)
• • LPA (lasting power of attorney)
• • Scottish Trust Deeds
• • Personal, Partnership and Company Bankruptsy
• • IVA's

»For details of the above see 'Services'

What is a trust?
A trust is a formal transfer of assets (it might be property, shares or money) to a small group of people (usually two or three) or to a trust company with instructions that they hold assets for the benefits of others. If the trust is to be made in your lifetime, to take immediate effect, then it is usually evidenced by a trust deed. If it is to be created on or shortly after your death then the trust rules must be set out in your will, known as a “Will Trust”.

What does a trust do?

Whether by lifetime settlement or by will, the trust document states who are responsible for looking after the gifted assets, (the trustees), who are to benefit (the beneficiaries) and any rules or conditions which the trustees and beneficiaries must adhere to. The separation of the legal ownership and beneficial ownership, which were once inseparable, is the unique characteristic of the trust concept whereby the trustees are the legal owners but the beneficial owners are the beneficiaries.

How long should a trust last?
How long a trust shall last is entirely as you think appropriate but you must stipulate the trust period in the trust document usualy around 80 years or it may be for just a few years, perhaps during a person’s widowhood or until a child attains a certain age or marries. If you are creating the settlement in your lifetime then you can appoint yourself and your spouse as trustees if you so wish so that you remain in control of the assets and decision making.

Why make a trust?
Throughout their history, trusts have been used to avoid or address problems in two main areas
1) Taxation Planning
2) Family Matters

Making a trust for taxation purposes
In your lifetime you can create a trust into which you can place chosen assets which you no longer need yourself. This reduces your own wealth and thus your exposure to inheritance tax - or maybe even wealth tax should that become a reality. By creating a discretionary trust in your will for the benefit of your spouse and children, you can take advantage of the nil rate band of inheritance tax, consequently making considerable savings against tax.

With further advice being available from your financial advisers, they can also provide advice on how best to ensure any assets or cash legacies are protected or invested to the advantage of the beneficiary.