Trusts
Many people will have heard of Trusts but what they actually are and how they can be of help can seem mystifying.
In short a Trust will exist where there is a separation of the legal ownership of an asset (which is with the Trustee), for example the name on the deeds to a house, from the underlying beneficial interest. The ‘beneficial interest’ is, broadly speaking, the economic benefit of the asset so in the house that would be the proceeds of sale.
The are a number of different types of Trust and they can arise in a number of different ways, for example by expressly creating them in a deed or a Will, by operation of law and they can be imposed by statute.
Trusts can be a powerful way of providing for people and applying structure to arrangements that can protect assets from third party interests.
We have seen a number of examples of people being talked into Trusts by unscrupulous unregulated so-called lawyers that promise undeliverable results and we have even seen such people get themselves appointed as Trustees leaving family members with real problems.
It is of the utmost importance to take proper advice in respect of any proposal to put your home into Trust, as there are profound implications that you will need to be fully aware of.
If you are asked to be a Trustee it can seem difficult to refuse but it is important to recognise that by agreeing to act as a Trustee you have an obligation to administer the Trust in accordance with the Trust document and the law. It can be an onerous and sometime thankless job that should not be undertaken lightly.
Whilst Trusts are not a panacea they can, implemented in the correct manner for the right purpose, be extremely helpful. At Ashton & Co solicitors we strongly recommend that you take specialist advice from a regulated legal practitioner before embarking on Trust arrangements and our specialist lawyers will be delighted to assist.