What is a Trust?
Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance taxes.
Why should you set up a Trust?
Setting up a trust can help to protect your assets and save tax at the same time. For example, you might want to give your grandchild a lump sum, but not want her to spend it on the wrong things. By putting the money in trust, you can be sure that your grandchild will benefit from the money. Your appointed Trustees will manage the funds so that they are spent in line with your wishes. You could also benefit from a tax saving.
How do you set up a Trust?
A private client solicitor can set up and administer a trust. They will provide expert legal advice on what needs to be done to protect your assets and reduce inheritance tax. If you die within 7 years of establishing a trust, the assets in the trust become taxable. The solicitors at Fergusson Law in Edinburgh can provide expert legal advice on Trusts, Inheritance Tax, Wills and Estate Planning.