A trust is a way of controlling and protecting your assets.
If you make a gift, the person receiving the gift assumes all rights over it and can do with it how they wish. If you make the gift into a trust, then you can attach certain conditions to it.
A trust is the formal transfer of assets, e.g. your house, shares, cash etc, to a small group of people with the instructions that the assets are held for the benefit of others.
If the trust is made in lifetime, then the details of the trust will usually be documented by a trust deed. If it is created on death then the details of the trust will be in the Will, a ‘Will Trust’. Whether in lifetime or by Will, the trust document will state who are responsible for looking after the assets (the trustees) and who will benefit (the beneficiaries). The document will also outline any rules and conditions that the trustees and beneficiaries must follow.
Pavilion Row can advise you on the suitability of a Trust and help with drafting of any formal documentation required.
As part of the European Wide Anti Money Laundering regulations most Trusts are now required to by register with HMRC irrespective of whether they are Taxable or not. This includes Trusts set up by the Will of somebody who has died.
The legal responsibility for registration falls with the Trustees and failure to register may result in a fine.
If you require any advice regarding this, please do contact us.