It has been said that for every family problem or situation, there is a trust that can be constructed to suit the need. Creating the right type of trust to match your particular situation requires specialist help.
Whether creating the trust by Will, or in your lifetime, selecting the trust type and its terms are very important. In this brief summary we have mentioned only the main types of trust; there are many variations – the protective trust which automatically terminates the interest of a profligate beneficiary who attempts to dispose of his interest, the (once popular) marriage settlement and the “bare” trust which makes the beneficiary the actual owner so as to use their personal tax allowances to name a few. These and the other trust types have differing tax effects, which must also be considered, and specialist advice sought. For maximum flexibility it is usual to give the trustees wide management powers so that they are better able to respond to any changes in family matters and taxation – not least changes in Government. With such wide trustee powers be sure to choose your trustees carefully. Remember, the Trustee of the babes in the wood was their wicked uncle!
A trust which might last for 80 years or even 800 years needs careful planning but the benefits can last just as long if you take specialist advice beforehand.