Setting Up a Trust

A trust is a legal arrangement where assets (such as money, property, or investments) are held by one or more people (called trustees) for the benefit of others (called beneficiaries). Trusts are useful in estate planning, protecting assets, and providing for vulnerable or young beneficiaries.

Why Set Up a Trust?​​

You might set up a trust to:

• Protect assets for children or grandchildren until they reach a certain age
  
• Provide for a loved one who is disabled or vulnerable
  
• Reduce the impact of Inheritance Tax
  
• Control how assets are used after your death
  
• Ensure assets pass to specific people (for example, from a second marriage)
  

Key People Involved

• Settlor – the person who sets up the trust and places assets into it
  
• Trustees – the people who manage the trust and carry out its terms
  
• Beneficiaries – the people who benefit from the trust
  

Types of Trust

There are several types of trusts, including:

• Bare Trusts – simple trusts where beneficiaries have an immediate right to the assets
  
• Discretionary Trusts – trustees decide how and when to distribute the assets
  
• Life Interest Trusts – someone (usually a spouse) can benefit from income during their lifetime, with the capital passing to others later
  
• Disabled Person’s Trusts – designed to protect the interests of a disabled beneficiary
  

Ongoing Responsibilities​

Trustees are responsible for:

• Managing the trust assets
• Keeping accurate records
• Submitting tax returns and managing tax obligations
• Acting in the best interests of the beneficiaries

We can provide ongoing advice or act as professional trustees if required.

Setting Up a Trust: The Process

1. Initial Advice Meeting
   We’ll discuss your goals and advise on the most suitable type of trust.
2. Drafting the Trust Deed
   We will prepare a legally binding document outlining the trust terms, the roles of the trustees, and the rights of the beneficiaries.
3. Transfer of Assets
   You will transfer the chosen assets into the trust. This may involve liaising with banks or the Land Registry if property is included.
4. Registration with HMRC
   Most trusts need to be registered with HMRC on the Trust Registration Service (TRS).

costs & timescales

​The cost of setting up a trust will depend on its complexity. We will provide a clear quote after our initial discussion. Timescales vary but a straightforward trust can usually be set up within a few weeks.

need advice?

At Alletsons Solicitors, we have expertise in estate planning and trust law. We will ensure that your trust is set up correctly, in line with your wishes, and fully compliant with legal requirements.

📞 Contact us today to arrange a confidential consultation. Call us on 01278 456621, option 2.