Setting Up Trusts
SETTING UP TRUSTS
In wills, trusts are usually set up to safeguard the interests of underage children, or incapacitated adults. Trusts are highly technical, and require expert treatment.
The Malcomson Law team can guide you through this process. Issues to look at include:
- Ensuring that the Trustees have sufficient powers to deal with the assets of the Trust;
- Deciding at what age children become entitled to their share of the Trust property;
- Ensuring that responsible and trustworthy trustees are chosen.
Discretionary tax:
A Discretionary Trust allows the Trustees to distribute funds as they see fit, but there are taxes attached. This arrangement will attract a discretionary trust tax when it is set up, and when it is concluded. It also attracts an annual levy for each year it is in operation.
If your children are now over 18 years of age, and you made a Discretionary Trust for them some years ago, it would be advisable to make a fresh will without this Trust. It would help to avoid unnecessary discretionary tax.
At Malcomson Law, we can offer a full range of advice on this and other trust issues.
Seeking Private Client Advice
For further information, please contact Malcomson Law by calling 01 8744422 or complete an Online Enquiry Form. Your enquiry will be forwarded to a solicitor who specialises in the area of Private Client.