Definitions
- Trusts are legal entities that enable an individual to benefit from an asset without being its owner.
- A Will allows you to establish a testamentary trust to safeguard the property you intend to leave to your family.
How to Establish a Trust
You establish the Trust and appoint individuals to administer it - the ‘Trustee’ or ‘Fiduciary’ - on behalf of the ‘Beneficiaries’, who receive the Trust's assets.
Creating a Trust can provide you with a measure of control over assets that you would not have, if you donated them outright. There may also be tax benefits, but this should never be the primary motivation for establishing one. In certain instances, transferring assets to a Trust could result in a higher tax bill.
Before establishing a Trust, you should always consult one of our Financial Planners and a Lawyer or Solicitor. Trusts can be complex structures with significant tax implications.
Types of Trust
There are two primary types of Trusts that you may establish: a Will Trust, which is created upon your death, and a Lifetime Trust, which is established during your lifespan. Here are the pros and cons of both options.