Trusts - keeping it in the family
1 May 2008
The phrase ‘Trust fund kids’ conjures up an image of the super-rich protected by complex legal arrangements.
These days, Trusts are for everybody. They can be relatively simple and cheap to arrange.
A Trust is simply an arrangement under which money or other assets are held and managed by one person for the benefit of another.
Even the Government endorses Trusts, offering the parents of all new babies born in the UK £250 to be invested in a Child Trust Fund and grow until that child reaches maturity.
There are many different types of Trusts and each kind varies in the amount of flexibility and control it offers.
Trusts can make life easier after someone dies as their assets, and even life assurance policies, can be put into trust and in some cases this avoids probate and makes funds available to help pay any inheritance tax that may be due. Trusts can also be used if you want to make gifts during your lifetime.
You and your money can offer you guidance but not advice so if you want to find out more about Trusts and how they could help you should seek advice. A very good time to do this is when you are reviewing your finances and your Will. To find a solicitor, try www.lawsociety.org.uk
There is also a professional body called STEP (Society of Trust and Estate Practitioners) whose members are professionals, specialising in Trusts and estates, executorship, administration and related taxes. They can be contacted on 020 7838 4890 or you can find a member in your area on their website at www.step.org
To find out more about Child Trust Funds see www.childtrustfund.gov.uk
