Trusts

A trust is a means of ring-fencing funds and assets so that they can only be used for certain purposes or for the benefit of specified people. Some trusts have one specific purpose and one specific beneficiary, others have far wider purposes and a number of potential beneficiaries. This is set out in the trust deed, which is often incorporated in a Will.

There are different types of trusts which are used for different purposes, for example:

• nil rate band discretionary trusts are commonly written into wills and used as part of overall inheritance tax planning


• trusts for children or grandchildren can be used to ensure that inheritances are safeguarded until children reach a certain age


• trusts for disabled persons can be set up within their lifetime to make sure funds and assets are properly managed and that others cannot take advantage of vulnerable persons.

Who are the trustees and what can they do?

The trustees are appointed under the trust deed to manage the trust and to make all decisions regarding the funds and assets in the trust. However, they do not necessarily have the ability to do whatever they want – the trust deed will specify the trustees’ powers and they must act within their powers. Trustees have legal duties to manage the trust properly and make payments only to the specified beneficiaries. Trustees must also prepare annual accounts and tax returns.

How can Lindsays help?

• We offer practical help and advice on:


• Use of trusts in inheritance tax planning


• Setting up trusts, trustees powers, tax implications


• On-going management of trusts - trustees’ meetings, decision-making advice


• Investment advice and funds management


• Making payments from trust funds or transferring assets into trust


• Administration – annual accounts, tax returns


• Winding-up trusts – final distributions/ transfer of assets, tax, accounting

Contact one of our experts for more information and to discuss your individual circumstances.