Trust

Trusts are a form of legal agreement that provide a very useful tool to protect and manage the distribution of assets such as land, property and money for named individuals, who are called beneficiaries. In many cases trusts can be set up to mitigate future tax payments or to protect a vulnerable beneficiary, while ensuring that assets are protected for your family.

“Setting up and administering a Trust is generally straight forward, but we know from our experience that it’s common for our clients to feel that they do not fully understand how these agreements work and this is where we can help; we are here to explain and advise on the choices that you have to match your circumstance and aims.”
David Cornelius, Partner

What advice can I expect?

At Nash & Co our experienced Team can advise you on both existing Trusts and the establishment of new Trusts. A well run and administered Trust is a very useful way of managing and assets, however ignoring how the Trust should be managed or not fully understanding how it works can cause significant problems.

How do I know what’s best?

We regularly look at Trusts for clients to explain what they do and how they work, identifying and dealing with any potential problems which may occur in the future. We also assist in the general annual administration of Trusts and when the Trust is no longer needed we can help dissolve it.

What should I do next?

In the first instance just contact us for a free consultation where we will review the Trust arrangements that you have in place and explain the choices that you have. And if you think that a Trust may be an option that you should consider, but you are unsure how they work, again – contact us and we will be more than happy to talk through the options.

There is great deal of information available about Trusts online and while this can be useful, it may not provide the answers that you are looking for and besides, it’s often difficult to know the right questions to ask in the first place.

We have the expertise and our experience tells us that no question is too small to ask, which is why we are very approachable and happy to answer and explain all the aspects of Trusts.

Get in touch with David Cornelius or one of the team, and we’ll talk about how we can help. David’s email address is [email protected] and his phone number is 01752 827076.

Asset Protection Trusts (Click Here for FAQs)
What is an asset protection Trust?

You can create a trust that you put your savings and home into in order to protect it from care fees and sometimes also from the hassle of maintenance of the property.  You will need to appoint Trustees for the Trust.

Will it work in saving care home fees?

Not always.  The Local Authority have to consider that a reason that you put assets in a trust was to avoid care fees and they can pursue the trustees for a period of 6 years after the date of the gift, if you need Local Authority financial support for care within that period.

Is there a down side?

Trusts are taxed in their own right and you can lose principle private residence exemption in respect of the sale of your home, if you sell and want to purchase another home.  You might have to pay Capital Gains Tax.

Is there any other tax?

Trusts are subject to a 10 year charge for Inheritance Tax at 20%, so the Trust will pay this every 10 years or part thereof.  You will need to register the Trust with HM Revenue & Customs and complete an annual tax return, unless they indicate it is not required.  If your Trustees buy and sell taxable assets, Capital Gains tax might also be relevant to your investments.

How will the Trustee manage the Trust?

They will have to have Trustee meeting, how frequently will depend on the kind of Trust, which will have to be minuted.  The Trustees must keep a record of their decisions and the transactions of the Trust Fund.

Will I have to go to Probate?

It might save you having to apply for probate on your death, but the Trust will still need to be wound up and HM Revenue & Customs will need to close their file on the Trust.  If you still retain an asset that requires a Grant of Probate, then your Executors might need to apply for Probate anyway.