So, instead, you can set up a trust. With a trust, the money has to be used according to rules you set out. In the official jargon, a trust is a legal arrangement where one or more people or a company (called the trustees) controls money or assets (called the trust property) which they must use for the benefit of one or more people (the. How to set up a trust fund As the trust needs to be legally-binding, precise and clearly laid-out, you should ask a solicitor to set it up. It can cost around £1, to set up a trust. A solicitor will make sure that the wording is exact and there’s no ambiguity, which could lead to costly issues further down the line.
A trust does not qualify for special Income Tax treatment if the person setting it up can benefit from the trust income. However, from to it would qualify for special Capital Gains Tax. Bare trusts. Assets in a bare trust are held in the name of a trustee. However, the beneficiary has the right to all of the capital and income of the trust at any time if they’re 18 or over (in.
The needs of beneficiaries can change over time as their circumstances change – a good Trust solicitor will be able to ensure the Trust can adapt. Trusts are often set-up with some degree of strategic tax planning in mind, with tax advantages and disadvantages being considered. This includes the mitigation of inheritance tax. A Trust is a legal arrangement that allows assets such as property to be looked after for the beneficiaries in your Will. Assets are looked after by a third party, known as the ‘Trustee’, to avoid anything passing to someone you don’t want to inherit.