"A trust is a way of managing assets (money, investments, land or buildings) for people".*
How does a trust work?
Trusts involve one or more trustee(s) and beneficiaries. The role of the trustee is to make sure any assets (such as those mentioned above) are looked after for the benefit of the beneficiaries.
When might a trust be used?
There are different sets of circumstances where setting up a trust to protect assets may be beneficial, including:
- When the beneficiaries are too young to look after the assets themselves
- To protect your own assets from tax and other liabilities
- To safeguard assets from any creditors you may have
Setting up a trust
Before trying to set up a trust, it's important you get professional legal advice tailored to your circumstances. This will ensure you are aware of all the legal implications and responsibilities associated with trusts and also whether a trust is the best vehicle to help you achieve your desired outcomes.
If you have any questions about trusts or would like to speak to us about setting one up, get in touch to arrange an appointment.
As the name implies, asset protection deals with looking after things that you own, such as your house or savings.
There are a number of reasons why you may want to protect your assets, which include:
- Reduce your tax obligations
- Difficulties in your relationship, whether married or cohabiting
What are your asset protection options?
There may be a range of options open to you to help protect your home from any future claims on it or tax liabilities, such as:
- Making your children the legal owners of your home
- Creating a trust for your home and other assets
- Transferring 50% ownership of your home to your children when your spouse dies
What to look out for
There are many legal implications to consider before you go ahead with any of the above options. This area of law isn't straight-forward so it's wise to seek advice based on your own circumstances.
Some of the main pitfalls to be aware of include:
- If your children sell the property, they may be subject to capital gains tax
- There may be an inheritance tax claim made immediately following any property transfer
Asset protection can be a legal minefield. Make sure you speak to one of our legal team for advice you can trust. Call to book your no-obligation appointment now on 0131 337 1800.