As you build your wealth, it’s natural to think about how to protect and pass it on to future generations. A discretionary trust can be a powerful tool to achieve this goal.
A discretionary trust is a legal arrangement where you, as the settlor, transfer assets to trustees who hold and manage them for the benefit of specified beneficiaries. The key feature of a discretionary trust is that the trustees have the discretion to decide which beneficiaries receive benefits and how much they receive.
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For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of Trusts and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Why Consider a Discretionary Trust?
- Asset Protection: By transferring assets into a trust, you can protect them from potential creditors, including those of your business. This can be particularly important for individuals with substantial assets.
- Tax Efficiency: Depending on how the trust is structured, there may be opportunities to reduce inheritance tax (IHT) liabilities. Careful planning is essential to maximise these benefits.
- Succession Planning: A discretionary trust can help you plan for the future by ensuring a smooth transition of wealth to your chosen beneficiaries.
- Privacy: By placing assets in a trust, you can maintain a degree of privacy and avoid public scrutiny.
How Does a Discretionary Trust Work?
- The Settlor: This is the person who creates the trust and transfers assets into it.
- The Trustees: These individuals or corporate bodies are responsible for managing the trust assets in accordance with the terms of the trust deed.
- The Beneficiaries: These are the individuals who may benefit from the trust assets. The trustees have discretion over who receives benefits and how much they receive.
Key Considerations for Individuals
When considering a discretionary trust, you should be aware of the following:
- Asset Selection: Not all assets are suitable for inclusion in a trust. It’s important to carefully consider which assets to transfer, taking into account factors such as liquidity, tax implications, and potential risks.
- Trustee Selection: Choosing the right trustees is crucial. They should be trustworthy, experienced, and able to manage the trust assets effectively.
- Tax Planning: Consulting with a tax advisor can help you optimise the tax efficiency of your trust.
- Legal Advice: It’s essential to seek legal advice from a specialist trusts lawyer to ensure that your trust is properly structured and complies with all relevant laws and regulations.
Blackstone Solicitors: Your Trusted Legal Partner
Blackstone Solicitors is a leading law firm with a wealth of experience in advising clients on complex trust and estate planning matters. Our team of dedicated professionals can help you:
- Structure Your Trust: We will work with you to design a trust that meets your specific needs and objectives.
- Draft the Trust Deed: We will prepare a comprehensive trust deed that outlines the terms of the trust and the powers and duties of the trustees.
- Appoint Trustees: We can assist you in selecting suitable trustees and ensuring that they understand their responsibilities.
- Provide Ongoing Advice: We will continue to provide advice and support as your circumstances change.
By choosing Blackstone Solicitors, you can have peace of mind knowing that your wealth is protected and your legacy is secure.
Common Misconceptions About Discretionary Trusts
- Loss of Control: While you transfer ownership of the assets to the trustees, you can retain a degree of control through the terms of the trust deed.
- Complexity: While discretionary trusts can be complex, with the right legal advice, they can be relatively straightforward to set up and manage.
- High Cost: While there are upfront costs associated with setting up a trust, the long-term benefits can outweigh the initial expense.
Conclusion
A discretionary trust can be a valuable tool for individuals who want to protect their wealth, plan for the future, and ensure that their assets are distributed according to their wishes. By working with a trusted legal advisor like Blackstone Solicitors, you can navigate the complexities of trust law and achieve your long-term financial goals.
We have a proven track-record of advising upon all aspects of private client work. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.to incorporate, what kind of ownership
How to Contact Our Private Client Solicitors
It is important for you to be well informed about the issues and possible implications of dealing with trusts. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Trust solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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