Setting Up A Trust
The process of setting up a trust will completely depend on what kind of trust you wish to set up. There are many different types of trusts including:
Child Trust Fund (assets protected for minors)
Charitable Trust Fund (assets donated to one or a number of charities)
Family Trust Fund (assets which are protected by, and given, to family members)
Investments Trusts (an investment fund which invests in hope of capital growth and / or income)
Trusts are typically set up to protect hard earned assets, assuring they are passed on exactly how and to who you wish. Setting up a trust involves these these key features:
The donor or 'settlor' - The person who holds the original asset and who starts the trust.
The trustee(s) - Those who are legally responsible for the the management of the assets. They must adhere to the trust deeds and always work in the best intentions of the beneficiaries.
The beneficiary - Those who are to gain from the assets in the trust. This may be a single person or a group of people.
The trust deeds - The legally binding document, also known as a declaration of trust, which holds the trust together. It is usually written by the settlor with the help of a financial advisor or solicitor and will outline the trust's intentions and outcomes.
Each type of trust fund you may set up is susceptible to different taxes and tax exemptions. Remember, as a trustee you are responsible and liable for any tax which needs to be paid on a trust and it is your duty to adhere to them. It may also be advisable to seek professional help when forming the trust deeds to ensure they are legally binding.
Whichever stage you are at in setting up a trust fund, and which ever party you fall into, it may be best to receive professional help from an independent financial advisor:
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