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A trust is a means of holding assets (usually money or property) for the benefit of another person or a group people. The trust is managed by ‘trustees’ who are responsible for managing the trust according to the wishes of the person who has placed the asset in trust.
Creating a trust
You can set up a trust for a variety of reasons. Among the most common reasons are to protect assets from creditors or from tax liability, or to set assets aside for the use of others – we’re all familiar with the term ‘trust fund’, a fund set up to pay out when a child reaches a certain age.
Trusts are popular because they allow rules to be put in place. This means that the beneficiary must comply with the rules before they can receive the benefit.
Trusts are managed by trustees. Legally speaking, the trustees become the owners of the property placed in trust. Trustees can be individuals or companies. The number and identity of the trustees can change, providing there is always at least one. The trustees have responsibility for dealing with the assets, complying with the trusts purposes and overseeing the management of the assets, for example by investing money or renting property to generate income.
Contact our Trust Lawyers
This a straightforward overview of a complex area of law. Contact Hennessy Bowie for more information on creating or managing a trust. Call us on 0141 762 4040 or click here to make an online enquiry.
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