A Trust is a legal agreement between three parties. This agreement is a way of managing your assets. These could include things such as your finances, investments, land or property purchases.
Trusts involve three parties:
- The Settlor – The person who is putting the assets into the Trust
- The Trustee – The person who will be managing the Trust
- The Beneficiary – The person who will benefit from this Trust
Here are seven situations in which you could benefit from creating a Trust:
- You have multiple assets and are considering creating a Will but want your spouse to be the Trustee and your children the Beneficiaries. This is particularly relevant to your estate as there may be significant inheritance tax.
- You are jointly purchasing a family home with several people. In addition to creating and registering names on the land title, it is very important to consider creating a Trust to clarify further interests. Furthermore, it is crucial that all parties understand how these interests work.
- You are starting a business with someone and want to make sure your property interests are easily identifiable and accessible should you encounter issues in the future.
- You are going through a divorce but need help proving your interests in the property disputed. Alternatively, you are considering getting married and would like to protect your assets for your family.
- You have been diagnosed with an imminent, life-threatening illness and would like to quickly sort out your affairs without taking away what little time you have left to spend with loved ones.
- You are setting up a charitable institution and would like to register it with the Charities Commission. This is especially relevant for religious, sport, identity organisations, and other causes that require the use of funds to make land purchases and require the drafting of constitutional documents.
- You are overseas quite often with assets and properties that need direct attention by either a management company, a family member or a trusted friend. However, you still seek to retain your interests in the property.
In these situations, creating a Trust can be confusing and a lot of work. However, the alternative is not creating a Trust that may lead to more confusion and disputes in the future. We, at Stirling Ackroyd Legal, have trusted experience in preparing Trust instruments and constitutional documents. Commonly, most people request information from our firm regarding Bare Trusts and Tenancy in Common for land purchases. If you would like further information on creating a Trust or would like to schedule a free 20-minute consultation, please contact us on 02030583363 or email our enquiries page.