Trusts

What is a Trust?

A Trust is an obligation binding a person called a Trustee to deal with property in a particular way for the benefit of one or more beneficiaries. The person creating the trust, known as the Settlor, transfers assets such as money, investments, real property etc to the trust. Assets also be added later. The Trust Deed directs how the assets held in the trust should be used, and also how any income which may arise should be used.

There are two main types of trusts, which are:

Interest in Possession Trust- This type of Trust can be created in a Will in favour of the surviving spouse. This will ensure that the whole of the estate will be exempt from Inheritance Tax, and it will also enable 2 full thresholds to be claimed on second death.
Discretionary Trust- This gives the Trustees complete discretion over the application of Trust capital and income for a range of beneficiaries. Income can also be added to capital rather than paid out if desired.

When might you want to use a Trust?

When leaving a legacy in a Will or a more substantial inheritance to minor beneficiaries eg children or grandchildren
To protect assets from the risk of divorce
To protect assets from the risk of nursing home fees
To provide for someone who may not be good with money or cannot manage their own affairs, e.g because of incapacity.
To maintain an element of control over how money is spent and when and/or whether assets are sold or passed on especially in the case of farms and private company shares.

Why Use Gabb & Co?

We have considerable expertise and experience in this field and our specialist and dedicated team can guide you efficiently through the various options which may be available to you. We currently manage over 300 Trusts, and can offer guidance and practical advice, even in cases where we are not the Trustees

We are rated as one of the top firms in Wales in the “Legal 500” and Chambers Directory for our personal tax, trusts and estate planning service and pride ourselves on offering a first class and cost-effective service.
We specialise in advising on Inheritance Tax mitigation and where agricultural or business assets are involved we can ensure that you receive the appropriate advice to ensure that any Trust established is fully tax efficient.

Our specialist Team is always on hand to answer any query you may have and you can simply contact us or use our Enquiry Form and we will ensure that a specialist Team member contacts you to discuss any queries/concerns you may have.

How Much will it Cost?

We offer a standard Will Trust service which will be of interest if:

You have young children or grandchildren that you wish to inherit assets
You are concerned about nursing home fees
You are concerned about Inheritance Tax (especially if you are a widow or widower who has remarried or is thinking of remarrying)
You are concerned about protecting assets from the risk of divorce, bankruptcy, etc
If you want to provide for children from a previous marriage

The cost of straightforward mirror image Wills for spouses incorporating suitable asset protection Trusts is £500plus VAT.

If you would like more advice about setting up a lifetime settlement or to talk through the pros and cons of using trusts with a member of our Team, please submit an Enquiry Form and we will be pleased to let you have a quotation once we know exactly what you want.

If you are unsure as to the type of Trust you require, or whether a Trust is appropriate for you, please contact a member of our Team or complete an Enquiry Form, and a Team member will be more than happy to explain. Alternatively you can contact us.

Contact details:

email privateclient@gabb.co.uk
post 32 Monk Street, Abergavenny, Monmouthshire NP7 5NW or Old Bank House Beaufort Street Crickhowell NP8 1AD
fax 01873 857589

If you have any general questions at this stage, you can always telephone us and ask to speak to a member of our Private Client Team on 01873 852432 (Claire Lewis or Dawn Sullivan) or 01873 810629 (Nicky Sherrard)