Trusts Solicitor

A Trust provides you with the opportunity to protect both your own financial interests, and any loved ones’ futures. 

What is a Trust?

A trust is a legal way to manage assets – typically money, property, or investments – for someone else’s benefit. It’s often used to protect and provide for loved ones who may not be in a position to manage these assets themselves, such as young children or individuals with specific needs.

To set up a trust, a person (known as the Grantor or Settlor) transfers their assets to trustees. These trustees then manage or distribute the assets according to the instructions in the trust agreement. The beneficiaries of the trust are the people or organisations who will benefit from the assets. Trusts can be created during your lifetime (a living trust) or through your Will (a testamentary trust).

Types of Trusts Explained

While you may have only heard of trusts being used for the wealthy, they’re actually very flexible and can be tailored to a wide range of needs. Here are some common types:

• Bare Trust: This is a straightforward setup where trustees hold assets for beneficiaries who are the actual owners. It’s often used for children (under 18 years old), to be held until they’re old enough to manage them.
• Discretionary Trust: Here, trustees have control over how to manage and distribute the trust’s assets. This setup is flexible, allowing trustees to adapt to beneficiaries’ changing needs over time. It’s ideal for situations where circumstances or tax rules might change.
• Mixed Trust: Combines features of different trusts. For example, part of the trust could operate like a discretionary trust, while another part works like an interest-in-possession trust.
• Interest in Possession Trust: This type allows someone (a “life tenant”) to receive income or use a property, while the underlying assets remain protected for other beneficiaries. This is an ideal choice for second marriages where you want to provide for a partner, but also protect certain assets for your children.

How Fitzhugh Gates Can Help

Creating a trust can seem daunting, but you don’t have to navigate it alone. At Fitzhugh Gates, we specialise in guiding individuals and families through the process of setting up the trust that works best for you.

• Tailored advice: We’ll help you determine the right type of trust for your needs and ensure it’s set up properly.
• Future planning: From selecting trustees to tax planning, we’ll help you secure your assets for the long term.
• Ongoing support: Trusts often need maintenance and management. We’re here to assist every step of the way.

To get started, feel free to get in touch with our team today on 01273 461 381, or drop into our Shoreham-by-Sea office.