Trust Management

Creating a Trust

The main types of trust are:

• discretionary trusts
• interest in possession trusts
• bare trusts
• accumulation and maintenance trusts

There are numerous types of trusts and because each is managed and taxed differently there are advantages and disadvantages to each type. It is important we understand your aims and circumstances so we can advise which is the best option for you.

Trust administration

It can be time-consuming and stressful to administer a trust, so our friendly, expert team of solicitors will support you so you can carry out your duties as trustee lawfully and correctly.

The reporting and compliance requirements around trusts are complicated, to include complying with the Trust Registration Service. Failure to administer your duties in the proper manner could mean you face a claim from beneficiaries or a penalty from HMRC.

As specialists in this field, our solicitors can provide a range of services to protect your trust. These include:

• Managing the administration of the trust.
• Advising on legal compliance.
• Acting as a professional trustee. We have our own trust company which can be appointed as trustee.
• Advising you on your responsibilities and legal powers as a trustee.

Discretionary trusts

With a discretionary trust, the trustees have the power to make decisions around how best to use the trust income and/or capital. This type of trust can prevent assets being frittered away.

They tend to be quite flexible and there are options to protect assets if circumstances change.

Discretionary trusts can be tax efficient and are sometimes used to support beneficiaries who are unable to manage funds, such as children or individuals with illnesses or disabilities etc.

Registering a trust

There is a requirement to comply with the Trust Registration Service. This enables the relevant authorities to keep a record of all trusts in the UK.

Since October 2020, all trusts – whether or not they have a UK tax liability – have to be registered. If a non-UK trust has at least one trustee who is a UK resident and if the trustees use UK-based businesses, such as lawyers, accountants and investment managers, or acquire an interest in land in the UK, that also must be registered.

Our friendly specialists understand the complexities of registration and will guide you through the process so ensure that you cover all of your responsibilities.

Managing a trust

Many trustees use a solicitor to manage their trust because it can be time consuming and complex.

Our specialist trusts team ensures that your trust is run efficiently and are responsible for ensuring your wishes are met and that your beneficiaries are provided for as you set out. 

We pride ourselves on taking care of our clients’ trusts and we actively manage them to make sure they are working as they should and continue to be the right vehicle for your assets. If you need to make changes, for example, if your circumstances change, then we will work closely with you to advise on how best to do that. 

If you are looking for support managing a current trust, it is possible for us to take over its administration. Please contact us to find out how we can support you with that change. 

What do trust solicitors do?

As experienced specialists in this field, our friendly team is here to advise you on all aspects of estate planning and trusts.

As well as assessing your needs and advising which trust to establish, we will prepare the necessary documents and will support you with regard to the administration and management of the trust.