Trusts are by no means the preserve of wealthy individuals seeking to reduce the tax they pay. Trusts (sometimes called settlements) are arrangements whereby assets are managed by one party for the benefit of others.
Hill Dickinson advises trustees and beneficiaries on their rights and obligations under existing trusts. Our specialist trust administration team ensures that all legal and taxation matters are efficiently dealt with.
We also advise business owners, property owners and other individuals on the setting up of new trusts.
These may have the purpose of protecting assets from potential sources of attack, or risk of dissipation, such as when:
- Beneficiaries are too young to manage their own affairs, or otherwise lack financial maturity
- Beneficiaries may face future divorce or bankruptcy
Trusts may also be appropriate for clients who wish to pass on the benefit of certain assets, but retain control over them. This is especially useful for:
- Business owners, who can continue running their companies, whilst providing financial benefits to children or grandchildren
- Clients who have decided which persons are to benefit, but wish to defer final decisions as to when those persons benefit, and by how much, to a later date
Whilst not the primary motive for setting up a trust, tax remains an important consideration. We can provide advice on maximising the legitimate opportunities for saving tax through the use of trusts.