PROMOTION A Question People are often confused by Trusts and think that they are just for the very wealthy. In reality, Trusts can be a very useful way of providing for your family and protecting assets What is a Trust? A Trust is any arrangementwherebywhen the righs to receive the income someone (the Settlor)gives money or cones to an end. Ifset up in a Will this assets(the Trust Fund toa group of people lthe Trustees) oo look after for Ins Trust the benefit ofanother person or geoup of people (the Beneficiaries). The Scttloe sets out in a Trust Deed how they want the Trustees to deal with the Deed will name the Beneficiaries or Trust Fund. Anything can be placed roups of Beneficlaries who could into a Trust, but it is usually money peoperty or shares. The Tnastees are then responsible forlooking after the Trust Fund for the benefit ofthe Other Beneficiaries will get the capital is known as an "Immediate Post Death Discretionary Trust-The Trustees When should I consider using decide when to pay income or capital a and to which Beneficiaries. The Trust.If you have remarried and want 0 provide for your spouse and peotect your assets for your children. Ifyour have a vulnerable Beneficiary whowould not be able to look afterassets for potentially benefis from the Trust Trusts for Vulnerable People-These can besetup in lifetime or ina W for people who qualify for certain disabilay related benefits or for those who lack capacity to manage their own alfairs. Ina Will youcan also set fyou have Bencficiaries who may receive state benefits and support, including longterm Who can benefit from a Trustt Trusts can beset up so benefit anyone. upa Trust for children under IR. These Theycan be for specific named people Trusts have special tax consequences. or can be for a groupof people(eg your grandchikdren) They can alsbe Do Trusts pay tax? used to benefit charkies care, ATrust can enable you to ake provision for thern without affecting the financial support that they receive Trusts pay income tax, capital gains tax and inheritance tax. The Trastees are responsible foe completing tax For Beneficiarles who are likely to be financially imprudent. Ifyou are receiving What are thetypes of Trust? There are numerous types of Trusts rearns and making sure that any tax Thesecan be set up during lifetime or ina Will, although some canonly be set up ina Will. The main types of bemade will depend on the type Trusts are Bare Trust- A simple type of Trus The Trustees hold the Trust Fund for a Whoan bea Trustee? named Beneficlary. The Beneficlaryis The Trustees can be anyone who the entitked toall ofthe Trust Fund. Thistypeis often used foe children until they turn 18or for personal injury awards Interest in Possession Trust-A named Beneficiary has the right to receve income from the Trust Fund. Sor independence copensation for a personal is paid. The amount of tax payable and the occasions that taxretuns need to injury protecting the award in Trust can make sure that you do not lose entitlement to state benefits and support of trust. .Ifyou want toghe assees away in yoar lietime but do not feelthat your Beneficlaries are ready to receive the money yet. Settlor truststo look after the Trust Fund for the Beneficiaries and can include the Settlor. Trustees do not have to be professionals but itcanbeFor more information please contact useful to have a professikenal Trustee (e-g. asolicitor)for complex Trusts or ictoria Motley by emaing or calling 01772 220022 forbessolicitors. Offices also0 in Accringion, Blackbum, Chorey, Leeds, Manchester and Preston