01446 771949/773669 [email protected]

Setting up a Trust

Trusts help you control and protect your assets

One of the most effective ways you can manage your estate planning is through setting up a trust.  These are no longer the sole domain of the super-rich. Trusts are incredibly useful and flexible devices that people employ for all sorts of different purposes, including Inheritance Tax planning.

A trust is a legal arrangement where one or more trustees (for example your children or a trusted friend) are made legally responsible for assets. The assets – such as land, money, buildings, shares or even antiques – are placed in trust for the benefit of one or more beneficiaries (that’s you and anyone else you want to benefit, such as your children, friends, or charities for example).

In its simplest form, a trust is just a legal mechanism for separating the ownership of an asset into two parts: the ‘legal’ ownership  on the one hand, and the ‘beneficial’ ownership on the other hand.

It is in the course of Inheritance Tax planning, though, that people are most likely to come face to face with trusts and seek to get an understanding of what they are and how they work. Their use is widespread and, despite some recent adverse changes in tax law, they remain an important tool in estate planning.

The purpose of a trust

Trusts may be set up for a number of reasons, for example:

• To control and protect family assets
• When someone is too young to handle their affairs
• When someone can’t handle their affairs because they are incapacitated
• To pass on money or property while you are still alive
• To pass on money or assets when you die under the terms of your will – known as a ‘will trust’
• Under the rules of inheritance that apply when someone dies without leaving a valid will (England & Wales only)

Setting up a trust

There are now three main types of trusts. Any number of different types of investments can be held in a trust, so you should obtain professional advice to decide which is best for you.

Call us for a formal discussion about your requirements on

01446 771949/773669


Don’t Miss Out on Claiming RNRB in April 2017

The Rules for claiming the new ‘residence nil rate band’ for Inheritance Tax are incredibly complex. The government’s own website uses 18 case studies in its explanation about how it works! Call us on 01446 771949 for clear and comprehensive advice about how this new allowance pertains to you and what you need to do to benefit from it.

Mulberry Vale Trust Planning Ltd is not regulated by the Financial Conduct Authority as we undertake activities that are not regulated or authorised by the FCA including Trust work, Will drafting, Research, Legal work and other non-regulated activities. The content of this website does not constitute regulated financial advice of any description nor does it purport to do so. If regulated advice is needed you will be referred to either a specialist financial adviser of Harries Powell & Price Ltd or a financial adviser of your own choice.
70 Eastgate
CF71 7AB
70 Eastgate
CF71 7AB

01446 771949