TRUST ADVICE & CREATION IN SCOTLAND

With a trust, you can:

• Control how your assets are used in the future.
• Appoint reliable people to administer your trust.
• Protect vulnerable or underage beneficiaries.
• Maintain your entitlement to claim means-tested benefits following an injury.

Family Protection Trusts are often regarded as complicated, but they really don’t have to be. At its simplest, a trust holds assets on behalf of people who cannot or perhaps should not own them outright themselves.

With a professionally drafted trust you can go a long way to protecting your cash, assets and family members. There are a host of financial and welfare benefits to creating a trust, but financial advice must be sought if you are considering a trust – as there are many tax and financial implications you must be made aware of before creating a trust.

There are many forms of trust you can make now or that can be set-up in the event of your death. The type of trust that fits your wishes will depend on your personal circumstances, preferences and financial situation. Each type of trust comes with its own requirements and tax implications – be it Capital Gains Tax, Income Tax, Inheritance Tax or any other tax regime.

Discretionary trust
A Discretionary Trust gives your trustees absolute discretion regarding the administration of the trust – including how the income (i.e. interest) and capital is to be distributed. This means that the trustees you name in the trust deed will have the right to determine which person or persons receive anything from the trust – and at whichever frequency they so decide. You can provide your trustees with guidance in the form of a letter of wishes, but your trustees themselves will have the final say.

Bare trust
This is a simple version of a trust. In a bare trust, one or more beneficiaries has an absolute entitlement to both the trust income and capital. There is no discretion afforded to the trustees, as the identity of the beneficiaries is explicitly stated.

Liferent trust
This is most commonly created in a will. If you own a house with someone else and you’re concerned that your surviving co-owner may sell or transfer the house to someone other than your family or loved-ones in the event of your death, you can state that your surviving co-owner can occupy and use your share of the house but not obtain the legal ownership of that share.

The property is held by your trustees on behalf of the surviving co-owner, who is entitled to use and enjoy the property. On the co-owner’s death (or other event specified by you), the property will pass to the beneficiaries you have named in your liferent trust.

Vulnerable persons trust
It is often the case that substantial assets or sums are to be passed to someone who is incapable of safeguarding these assets or sums by themselves. In certain circumstances, a vulnerable person’s trust can protect such a beneficiary from financial embarrassment, however eligibility for a vulnerable person’s trust is predicated upon strict criteria, as there are substantial tax benefits available for this type of trust.

We serve all Scottish areas including Glasgow, Edinburgh, Dundee, Aberdeen, Fife, Stirling, Inverness, Perth, Troon, Oban. A trust advice service Scotland can rely on.

Do I need trust advice?
There are many different types of Trusts which can be used in many different ways. As such, you ought to seek advice before taking steps to create a Trust. You will also require financial and taxation advice on the consequences of creating and running a Trust. Trusts are often regarded as complicated, but they really don’t have to be. At its simplest, a trust holds assets on behalf of people who cannot – or perhaps should not – own them outright. Contact us today to get the best advice on your Trust.

How do I name new trustees?
If the current Trustees wish to step-away from the Trust – either due to age, incapacity or unwillingness – these existing Trustees must formally assume (i.e. appoint) a new Trustee or Trustees to take their place before they resign from their Trustee duties. We can prepare all necessary documents and registrations to ensure that the Trust is controlled by appropriate and willing Trustees.

 

Contact us today on 0141 628 5544 to make an appointment, or email us now at info@weirlaw.co.uk. You can also send us a Free Online Enquiry.