Introduction
Setting up a trust fund is an important element to help protect your assets and make sure that they go into the right hands for your future generations.
No matter, if you want to support your children’s education or help your loved ones, setting up a trust fund, is a flexible way to achieve your financial goals.
In this article, we will learn about the process of establishing a trust fund and how getting legal help from WLS Solicitors Ltd Incorporating Abrahams Wills and Legal Services will make sure that you set up a trust fund in the best possible manner.
So let’s get started!
What are Trust Funds?
Before we learn how to set up a trust fund, let’s understand the basics of a trust fund. A trust fund is a legal entity that is created to manage your assets on behalf of you.
This fund holds your assets, and they can be used for different purposes, be it charity or estate planning. There are three main parties that are involved in the process of setting up a trust fund. These are:
- Grantor or Settlor: This is the individual who is willing to set up a trust fund to transfer the assets into it.
- Trustee: The trustee includes the institution or agency that is responsible for managing the trust fund according to the legal terms.
- Beneficiaries: Beneficiaries include the person or people who benefit from the trust.
Types of Trust Funds
Now let’s have a look at the different types of trust funds that are created according to different needs and goals.
1. Revocable Trust
As the name itself suggests, this trust fund is quite flexible. The settlor or the grantor here can revoke the trust or make changes to it during their lifetime.
2. Irrevocable Trust
In this type of trust fund, the settlor permanently transfers the ownership and control of the property to a third party. However, this fund provides significant protection of the assets because they cannot be altered without the consent of the beneficiary.
3. Living Trust
The name of this trust is also self-explanatory. It is established during the lifetime of the settlor.
4. Testamentary Trust
This trust is established as part of a last will and comes into effect after the death of the settlor.
5. Charitable Trust
As the name itself suggests, this trust is made to benefit a specific charity.
Steps to Setting Up a Trust Fund
1. Define Your Goals to Create a Trust
The basic step to create a trust account is to specify the purpose of this fund. Are you creating it to support your children’s education, for estate planning, or to support a charity?
Defining your objectives is very important to set the trust in a legal and appropriate manner.
2. Different Types of Trust: Choose the Right One
The next step is to create the right type of trust according to the goal defined earlier. The expert at WLS Solicitors Limited can help you know your options thoroughly so that you can decide the best fit for your requirements.
3. How Much Does it Cost to Select Your Trustee?
One of the most critical steps of setting up a trust fund is to select your trustee. This person or agency is responsible for managing your assets and ensuring compliance with all legal requirements.
It is important to choose a reliable and credible trustee. They can help you get the best services due to the extensive experience of their team.
4. Draft the Documents of the Trust Account
The next step is to draft the trust document that outlines the terms and conditions of the trust.
Terms and conditions can include different elements like the name of the settlor, trustee, and beneficiaries, the description of the assets, instructions for managing the assets, and the terms for the termination of the trust.
WLS Solicitors Ltd make sure that your trust documents include all the important details and are customized according to your requirements.
5. Transfer Assets into the Trust in the UK
Once the trust is established, all the assets that are chosen will be transferred to it. Transferring the assets includes changing the ownership of the assets.
WLS Solicitors will help you in this step so that all the legal requirements are met.
6. Communicate to Relevant Parties
Once the transfer is done, beneficiaries and financial institutions will be informed about it. This step focuses on clear and transparent communication to avoid any misunderstandings later on.
7. Regularly Review and Update the Trust for your Child
It is also important to regularly assess and update the trust according to the current laws. This step becomes especially crucial if there are changes in your financial status.
The best part is that WLS Solicitors Ltd will provide you with ongoing support even after creating your trust to help you manage it.
Conclusion
Setting up a trust includes a series of complex legal and financial steps. However, WLS Solicitors Ltd ensures that your trust is set up according to the legal requirements and is managed effectively.
Abrahams has extensive experience in trust management and estate planning. As a result, they are updated with all the latest laws and regulations to provide you the best advice.
Moreover, they understand your situation and provide solutions with a personalized approach.
Be it the initial consultation, drafting the trust document, or transferring the assets, they provide comprehensive support and will be ready for you at each step of the way. So what are you waiting for?
