Trusts

The basic principles of Trusts date back many years and have been a feature of the English legal system for centuries.

Setting up a trust involves giving assets to trustees, who then manage the assets for the benefit of the named beneficiaries in accordance with the terms of the trust.

The use of trusts for the purposes of asset protection has soared over recent years. Trusts are no longer used by just the extremely wealthy in society. The most common ones we are asked to establish are asset protection trusts, personal injury trusts and declarations of trust.

Asset Protection Trusts (Family Trusts)

There are a lot of advantages to setting up an asset protection trust/family trust:

1. It can protect assets for future generations
2. It can create ease of administration in future and in some cases can avoid the need for probate
3. It can offer protection from beneficiaries, even if circumstances change, for example, in the case of re-marriage in future
4. It can protect a beneficiary’s position in the event that they may need to claim means-tested benefits or in the event of a divorce
5. It can avoid problems which may arise as a result of a lack of capacity in future years and, in some cases, avoid the need for a lasting power of attorney

There are obvious potential benefits of setting up these trusts, but it is also important that you are made aware of potential dangers and risks (something often omitted by the ‘travelling salesmen’ companies that also undertake this kind of work).

If you want to be in possession of the full facts before you make decisions about establishing trusts, call one of our solicitors to arrange an initial appointment to discuss your affairs.