Setting up a Trust

You can set up a trust to help protect and control your wealth in a flexible ownership structure. Trusts can be used for multiple reasons, including:

• Holding assets for children until they reach an age where they are financially responsible and can manage the assets
• Managing assets for vulnerable or improvident family members
• Providing a flexible structure for multiple beneficiaries, for example, for grandparents to help with grandchildren’s school fees
• Providing asset protection from claims on divorce, by creditors or from legal rights to inheritance
• Passing assets tax-efficiently to the next generation

Trusts are often used as a form of asset protection or as part of a careful tax planning strategy. Assets placed in trust should not form part of an individual’s estate on death, helping to mitigate the impact of inheritance tax (IHT). They can also be used to partially alleviate the effect of capital gains tax on the gift of assets.

There are multiple types of trust available and their tax treatment is complex. We recommend seeking specialist help to decide which trust – or trusts – will be best suited to your needs. An expert will be able to help you ensure that the trust deed is drafted in a way which provides maximum flexibility to respond to changing family circumstances and future changes in tax legislation.

Why choose Anderson Strathern

With Law Society of Scotland accredited specialists in trust law, and 13 members of the Society of Trust and Estate Practitioners (STEP), our trusts team is one of the largest in Scotland and is vastly experienced in all areas of trust law. We can assist with identifying the most appropriate trust structure and put in place comprehensive and flexible documentation to meet your objectives and ensure that the trustees are given sufficient powers to carry out their roles effectively.

We can assist with ongoing trust management, administering trust assets, providing investment advice through Anderson Strathern Asset Management, advising on payments from the trust fund, co-ordinating trustee meetings and providing guidance and support to trustees and beneficiaries about their rights and duties.