Help ensure that your family are secure

What is a Trust?

A Trust is a legal arrangement in which a ‘trustee’ (one or more individuals or a company) keeps assets for the benefit of a ‘beneficiary’ (one or more individuals).

When planning to leave an inheritance you want to ensure the right people inherit your wealth according to your wishes and to minimise inheritance tax. You can reduce the size of your estate by making gifts during your lifetime, but an adviser may recommend also using a trust.

Benefits of using Trusts

Trusts provide flexibility and can be tailored to meet your needs and requirements. You may want the beneficiaries to inherit the trust as soon as you die or to access it at a certain age. Alternatively, the assets can be held indefinitely to provide them with a certain benefit, such as a place to live.

Trusts can be an essential part of estate planning as they can help ensure that your estate is passed to the right people at the right time. They also provide financial security for your family and give you peace of mind.

Trusts are often used when the beneficiary is not able to manage the assets themselves Placing assets into a trust will also ensure that they are reserved for that particular beneficiary, rather than being spent.

You can set up a trust at any time or write one into your Will. Trusts set up as part of a Will may have the executor as trustee, but you can choose another trustee if you wish.

Tax implications surrounding trusts is complex and our advisers can help you understand if a trust is the best option for you. We will also help your trustees in understanding their roles in passing on your assets.

Using Trusts to reduce Inheritance Tax liability

Another benefit of using a trust is that they can reduce inheritance tax. When you place assets into certain types of trust, you are no longer their owner. The assets are therefore not part of your estate, and so will not be subject to inheritance tax when you die.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depends on individual circumstances.

Will writing involves the referral to a service that is separate and distinct to those offered by St. James’s Place.

 Wills are not regulated by the Financial Conduct Authority.

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Frequently asked questions

A trust is created by a settlor, who transfers some or all of their property title to a trustee, who then holds title to that property for the benefit of the beneficiaries.

A Trustee is a person or firm that holds and administers assets or property in a Trust. A Trustee can be an individual, a couple, group of people or a company. The Trustee is responsible for managing the assets in the Trust that have been set aside for someone else. The Trustee has to make decisions in the beneficiary’s best interests and obey the rules of the Trust.

The Beneficiary of a Trust is the person/group of people that have been chosen to receive the assets in the Trust. The Beneficiary benefits from the property or assets held in the Trust that are administered by a Trustee.

Wills and Trusts are not regulated by the Financial Conduct Authority.