There are several varieties of Trusts and depending on who you talk to whether they are accountants or tax advisers or financial planners different names and labels are given to Trusts. There are however two main kinds of Trusts namely a Discretionary Trust and a Life Interest Trust.
This Trust will be run by Trustees and the main feature of this Trust is that there is a class of beneficiaries i.e. more than one beneficiary, and the Trustees must run and administer the Trust in the interests of all parties. There is sometimes a Letter of Wishes with the Trust document setting out how the Settlor intended the Trust to run.
Life Interest Trust
This Trust is designed to primarily protect the Life Tenant namely the person who gets to live in the Trust property or receive the income from the Trust Fund. The capital whether it is property, investments or money is maintained for the capital beneficiaries who receive the Trust Fund once the Life Tenant has died.
Both of the above Trusts can sometimes be set up on death by a Will or set up separately by a Trust deed or document. There are various rules with regard to how the Trusts should be administered and there is further information contained within our web pages concerning the duties and responsibilities of a Trustee.
For further advice on the use of trusts for financial planning and asset protection please contact one of our Specialists for a free initial consultation.
If you have a query or would like to book an appointment please get in touch with our First Contact team on 01256 320555 or email firstname.lastname@example.org.
Wills and Estate Planning Partner
Wills & Estate Planning Solicitor