What is a Trust?

​

A Trust is essentially a “holding vehicle” / a “safety deposit box” in which you can place assets to protect them. You then appoint trustees to look after the assets for the benefit of defined beneficiaries.

 

There are a number of different types of trusts and each has their own purpose. Some have different benefits and tax treatments so professional advice is always recommended. 

 

Some of the common types of trust that Heritage Will Writers advise on include:

• Protective Property Trust 

• Vulnerable Person Trust 

• Discretionary Trust 

• Charitable Trust

 

What Does a Trust do?

 

Trusts are set up for a number of reasons, including:

• to control and protect family assets

• when someone is too young to handle their affairs

• when someone cannot handle their affairs because they are incapacitated

• to pass on assets while you are still alive

• to pass on assets when you die (a ‘Will Trust’)

 

What is a Trustee?

 

A Trustee is required to act in accordance with the terms of the Trusts (normally under the Will)

 

Trustees normally have the same amount of control over Trust property as if they owned that property themselves however the terms of the Trust are set out in your Will.

​

Trustees owe a legal duty to the Trust’s beneficiaries, meaning they must manage the Trust for the benefit of the beneficiaries and must act in the beneficiaries’ best interests at all times.

 

Being a Trustee can be a difficult and time-consuming role, and Trustees will often need the support of legal experts and/or a solicitor that specialises in Trusts if they are to carry out their roles correctly.

 

Trustees should be trustworthy, financially responsible and have good administrative skills. It is important to talk to someone you are considering as a Trustee and make sure they agree and are happy to be appointed before you appoint them.