A trust is a legal arrangement to organise the management and protection of assets. Trusts can be made during your lifetime or in your Will in which case they only come into effect after you have died.
There can be a number of reasons to transfer assets into a trust which may be connected with estate planning for example to reduce the size of the taxable estate for the assessment of Inheritance Tax after death or to manage assets on behalf of a disabled or vulnerable person.
In a trust, assets are managed by the trustees on behalf of one or more beneficiary. The nature of the assets may range from cash investments to real property, the beneficiaries may include family members and/or charities.
The creation of a lifetime trust may be part of a wider discussion about tax planning, and other ways to make lifetime gifts to reduce the ultimate taxable estate. Naomi will take full details of your family and financial circumstances, so that a there can be a meaningful discussion about these matters to enable you to make an informed decision.
The fees for trust work will vary in accordance with the type of trust you wish to create but a fixed fee will be provided before you decide whether or not you wish to proceed. We would also discuss any fees likely to be incurred in connection with the administration of the trust.
Trusts may also be included in your Will and the simplest form of trust would be a gift for a minor child to be held by the trustees until the child reaches a particular age, for example 18 or 21 years. More complex trust arrangements can be included to manage and protect the assets of the first spouse to die in connection with potential care home fees, or to protect assets for the children in the case of second marriages, or to enable a person to remain living in the home for a period of time subject to certain conditions such as payment of the household bills and maintenance of the property.
In relation to fees, the fees where a complex trust is included are higher than for a standard type Will but a fixed fee will be provided before you make your decision about which type of Will you wish to make. We would also discuss the potential costs and complexity of the administration when the trust comes into effect, after you have died. The consequences of setting up a Will Trust should be considered in a holistic manner and not in isolation.
If the trust is of a simple nature, for example to a minor child at the age of 18, the cost of the Will is no different.
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Naomi Pinder has specialised for over 20 years in helping people in relation to Wills, Powers of Attorney, Lasting Powers of Attorney, Living Wills, Deeds of Gift, Trusts, Probate, Intestacy, administration of estates and inheritance tax, Deeds of Variation and Court of Protection.
Naomi is passionate about raising awareness about the legal consequences of death and loss of capacity to make decisions whether through dementia, stroke, illness or accident. Naomi has appeared on radio Merseyside and enjoys giving talks to communities in Liverpool.
Naomi is a dedicated solicitor and is a fully accredited member of Solicitors for the Elderly.
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