Setting Up a Trust

With the right type of trust set up, you are essentially allowing someone else to manage your money or assets for you in a way that follows your individual requirements.

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Whether you’re looking to set aside money for your child to help them when they reach adulthood (on their 18th birthday, for example), or you want to cover your own medical expenses at an older age, setting up a trust can be a useful way of organising your finances to use in the future. 

You are able to protect your estate by putting it in a trust, whether it’s money, properties, businesses or any other assets, as it can then only be used in a way that follows your wishes.

What is a trust and how does it work?

A trust is a legal arrangement that allows you to choose one or more individuals, called trustee(s), to manage money or any other asset that you have designated for someone else (the beneficiary) or a specific purpose. 

The person that sets up the trust and owns the property within (money, businesses, property, etc.) is called the settlor. You, the settlor, determine a specific reason for the assets within the trust to be used in order to aid the beneficiaries.

Trusts store the settlor’s property until it is ready to be released and ensure that the trustee only uses the estate inside the trust when the requirements have been met – for example, when the beneficiary has turned 18 or has bought their first home.

Who are beneficiaries?

The beneficiaries are the people who benefit from the trust, which can be your children, spouse, or even yourself. For example, if you set aside money to pay for your medical expenses, you are the beneficiary, but if you set aside money to help your child pay for university, your child is the beneficiary.

Who are trustees? 

The nominated trustee is the person that manages the trust on the behalf of you and the beneficiary and can be a family member, friend, company, or solicitor, depending on your personal preferences.

If you choose a family member and friend, be aware that they can access the trust money, and therefore must be reliable, but they could also put your assets in danger of losing value. 

Most people tend to opt for solicitors as their trustees, due to their expertise and knowledge regarding trusts and the legalities surrounding the paperwork and so on. 

Unite Wills’ trusted partners are available to help you set up a trust today, and can manage the trust on your behalf in accordance with your wishes. 

What can I put in a trust?

What you are able to put in a trust varies in relation to the type of arrangement you have in place. 

Generally speaking, settlors are able to include things like money, investments, properties, businesses, or any other assets that would be of use to the beneficiary. 

You may have to pay tax with some trusts and the trustees might be required to complete tax returns, but our friendly advisors are on-hand to help you choose the most cost-efficient option for you. 

Why do I need a trust?

When you set up a trust, your assets are being held on behalf of the beneficiary, rather than them receiving it directly, thus protecting them from a variety of costs and potential risks.

The assets within the trust must legally be used in line with your requirements, whereas if you give money to someone directly (outside of a trust), they could use it for any purpose.

Trusts can also help protect against many other costs or potential issues, including: 

It’s important that you use a professional service, like Unite Wills, to ensure that your trust works exactly how you intend it to, and to avoid any loopholes.

With our help, you will be guided through the process without the hassle and can be certain that your assets will be used in line with your requirements.

The most common reasons for setting up a trust in the UK are to support someone who may struggle to manage a large amount of money themselves (children, someone with mental or physical health conditions), and to set aside a specific amount of money to look after yourself when the time comes (if you are diagnosed with dementia, for example). 

Setting up a trust is a reliable, safe and legally binding way of ensuring that your money or assets are used in line with your wishes.

Types of trusts

The two main types of trusts are known as ‘revocable trusts’ and ‘irrevocable trusts’. Irrevocable trusts are arrangements that cannot be revoked or amended in any way once they have been set up, while revocable trusts are amendable and can be altered if needs be. 

There are also some other types of trusts, including:

Don’t worry, you don’t need to know the difference between all of these – our reputable partners are on-hand to help you choose which option best suits your needs. 

Set up a trust with Unite Wills

Simply select the service during the completion of your online will or complete our short contact form to enquire about our trust service.   

 

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