Legal Trust
The main benefit of setting up a trust is that it is a legal entity in its own right: legally protecting your assets later on in life or after your death. Because a trust is legally binding and are specifically tailored to your needs and requirements, you have peace of mind that your wishes will be carried out exactly how you intended. So whether you set your trust as irrevocable, or allow your trustees to amend the trust deeds (discretionary trust), you always remain in complete control of your assets.
There are a wide range of legal trusts which can be created but in each instance the trustees and beneficiaries must adhere to the trust's legal document known as the trust deeds. These are a written set of rules in which you can determine:
- Who the beneficiaries are.
- Who the trustees are.
- How much power the trustees hold over the legal trust.
- What assets are given away.
- How they are given away.
- The frequency and time they are given.
A legal trust may offer increased protection for your assets, ensuring your family or loved ones receive exactly what you have intended. Unless experienced in trusts, the differing tax rules and regulations applying to different legal trusts can get complicated. There may also be a limit to the number of trust wills you can create.
An independent financial advisor may be able to offer advice on creating a legally binding trust deed and ensure you fully understand which trust will is best for your circumstances:
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