A trust is a bit like a virtual box. You can put almost anything of value into it, such as money or other assets, you can decide who is to benefit from it and how, and how it is to be managed and controlled.

You might create a Trust if you are leaving money to a child in a will, keeping it safe until they reach a certain age, which you can specify. You might decide that someone you care for needs a secure income. You could create a trust and put assets into it, such as an amount of money for investment, or a property that pays rent. You can then put rules in place to control how that trust is run. Trusts can help protect both the assets, and often the beneficiaries themselves.

A trust might be created in any of the following circumstances (but there are also many other possibilities):

• When a person is too young to handle their affairs.
• When someone cannot handle their affairs because they are incapacitated.
• To pass on money or property whilst you are still alive.
• Under the terms of a Will.
• When someone dies without leaving a Will.
• Where someone wants to set assets aside for a specific purpose

A trust is an entity in itself. Its creator, often called the Settlor, will have set all the rules in place, which will probably include what is to be in it, who is to benefit and in what way, how the trust might be dismantled at some stage, and how it is to be managed.

Trusts are often used as a tax planning measure and can be of real value to anyone with significant assets.

Trusts are, however, not straightforward. There will almost certainly be significant tax implications, positive and negative and at all stages throughout the life of the trust, and you do need the advice of a specialist solicitor. We can guide you both in relation to the creation and ongoing administration of Trusts, and also the implications for you if you are a beneficiary of one. Our team of specialists can help not only with the legal technicalities but they can also offer practical advice using their experience and common sense.