It is common for Trusts to be created by Wills which will then come into operation on the testator’s death, but there are also situations where people may wish to create a Trust to become operational immediately.
The Trust would be created by a document called the Trust or Settlement Deed. We can draft this for you and would explore with you all the options for the Trust, what the terms should be and what powers and provisions you would want to provide for your trustees. We would also be able to provide assistance and guidance for your trustees in taking on their new role.
The Trust would need to be registered with HM Revenue & Customs and we would assist you in the completion of the necessary forms to provide the tax office with the necessary details for registration.
We could assist in discussions about the Trust assets ensuring that assets are placed in the correct names and where the Trust assets include property, in conjunction with our Residential Property team, ensure the property is registered in the correct names at HM Land Registry.
Examples of such situations include:
- You wish to provide a gift to your children but are concerned that passing assets to them at this point of time may not be the best idea, as you are concerned that at the moment they lack sufficient maturity to deal with the assets in the most sensible way and it may remove their incentive to focus on their own development and future. By placing the assets into a Trust you may ring fence the assets for them so that they are available to them in the future but ensure that the responsibility of the assets falls to your trustees for the time being.
- You own a property in which your sister resides, which you purchased a number of years ago for her as she has encountered difficulties in her life and wished to provide her with some stability. You no longer wish to have the responsibility or ultimate benefit for this property and are happy to pass this to your children but wish to ensure that your sister has no disruption in her life. You can place the property into Trust providing her with the rights to live in the property but ultimately passing the property to your children after her death.
If you are considering gifting your family home to a loved one, then a outright gift may not be the best option. However, a Life Interest Trust allows you to leave the family home to a loved one whilst still protecting your asset for use during your life time. You can find out more about this in ourGuide to Gifiting The Family Home
If you would like to find out more about Lifetime Trusts, please speak to a member of our team.