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Trusts, in their simplest form, serve as a method for safeguarding assets, including money, investments, land, or buildings, on behalf of individuals. This legal arrangement designates one or more ‘trustees’ with the legal responsibility of holding these assets. The assets are placed in trust for the benefit of one or more ‘beneficiaries’.

Trustees play a crucial role in managing the trust and fulfilling the wishes of the ‘settlor’ who placed the assets into trust. The settlor’s intentions for the trust are typically outlined in their will or documented in a legally binding instrument known as the ‘trust deed’.

Trusts serve various purposes, such as:

  • – Controlling and protecting family assets
  • – Managing the affairs of individuals who are underage or incapacitated
  • – Transferring money or property during the settlor’s lifetime
  • – Passing on assets or funds in accordance with the terms of a will (referred to as a ‘will trust’)
  • – Complying with inheritance rules in cases where a valid will is absent
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Different types of UK family trusts exist, each with its unique taxation considerations. Additionally, non-family trusts are established for purposes such as charitable endeavors or creating pension schemes for employees.

‘Trust property’ is a phrase often used for the assets held in a trust, which could include money, investments, land, buildings, and other items such as paintings, furniture & jewellery.

Assets held within a trust, including money, investments, land, buildings, and valuable items like paintings, furniture, and jewelry, are commonly referred to as ‘trust property’. The cash and investments held in a trust form the trust’s ‘capital’ or ‘fund’, which may generate income through interest, dividends, or rental revenue. Selling assets within the trust may also result in gains. The taxation of trust income depends on the type of income and the specific trust structure.

Given the diverse forms trusts can take and the complexities of trust law and taxation, seeking professional assistance is highly recommended. By working with experienced professionals, you can navigate the intricate maze of trust law with greater clarity and ensure the most suitable trust structure for your unique circumstances.

Trusts as part of a bigger picture

In the realm of estate planning and asset management, trusts, wills, and powers of attorney are essential components that must be carefully considered as part of a comprehensive approach.

At Nicholls Law, we understand the interconnectedness of these elements and the importance of addressing them holistically. Furthermore, with our extensive experience in handling disputes related to trusts, wills, and powers of attorney, we possess a unique perspective that allows us to anticipate potential issues before they arise.

Overall, by working with our knowledgeable team, you can have confidence that we will guide you through the intricacies of these legal instruments, ensuring that your estate planning is robust, comprehensive, and well-protected.

Lastly, whether it’s drafting a sound will, establishing a well-structured trust, or implementing a carefully tailored power of attorney, we provide the expertise needed to safeguard your interests and mitigate potential conflicts in the future.

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