Setting up a trust
Information on the types of trusts and why you may decide to set one up for your beneficiaries.
What is a trust?
A trust is a financial arrangement where one person holds property, cash or shares on behalf of, and for the benefit of, another. Trusts are created for many reasons, including:
- ongoing support for beneficiaries such as children or grandchildren under your will
- more tax-effective estate planning
- to benefit a charity.
Types of trusts
There are several different kinds of trusts, and it’s often a question of matching your requirements with the right one. These include trusts for:
- children and young adults up to 18 or even 25 years of age and over
- beneficiaries not able to manage their own finances or who may be vulnerable to financial exploitation
- charities
- special disability
- accommodation.
The trustee has control over the assets held by the trust so it is important that they are honest, and have both the capacity and ability to manage all aspects of the trust.