What is a trust?
A trust is a way of managing assets (money, investments, land or buildings) for people. A trust agreement is a document that outlines the rules that you want followed for property held in trust for your beneficiaries. Common objectives for trusts are to reduce the estate tax liability, to protect property in your estate, and to avoid probate.
A trust consists is a legal agreement between three parties:
The trustmaker – this is the individual who creates the trust agreement and is commonly referred to as the grantor, trustor or settlor.
The trustee – the person or entity responsible for managing the property the trustmaker transfers into and titles in the name of the trust
The beneficiary or beneficiaries – people or entities that will receive the benefits of the property titled in the name of the trust
There are a number of different types of trust that can be setup depending upon the circumstances of each client and what they are hoping to achieve.
Living Trusts – A trust that is created and becomes effective immediately
Testamentary Trusts – When a trust is created but does not become effective until after your death. These are often created within Wills, and the person who created it is called the “testator”
Revocable Trusts – You retain ownership of and control of the property in the trust and can change the terms, including the trustees and beneficiaries.
Irrevocable Trusts – You give ownership and control of the property in the Trust to others (Trustees) and no longer own or control the property, thus making you unable to exact changes.
How can We help you with setting up a Trust?
Butterfly Financial Services Ltd can help work alongside a team of FCA regulated IFA’s as well as having access to a network of regulated legal professionals qualified in all aspects of estate, probate and family planning matters. This enables us to provide the correct information and ensure that you, the client, are given the best level of support for your needs. If you would like more information on setting up a Trust, please get in touch.