Question 1

What is a Trust?

Accepted Answer

It is a legal arrangement where an individual (a Settlor) gifts assets to people they trust (Trustees) to hold on specific terms for the benefit of one or more Beneficiary.The terms on which the Settlor wishes the Trust property to be held are usually set out in a Trust Deed or, if the Trust is created by a Will, the terms of the Trust would be set out in the Will.

Question 2

Does my client need a Trust?

Accepted Answer

If clients have a Pension, Death in Service, life cover or even a modest estate, they and their family are likely to benefit from one or more Trust Solutions.

Question 3

What can a Trust do?

Accepted Answer

Trusts can help protect inter-generational lifetime and deathtime wealth transfers. Legitimate protection benefits against claims such as divorce or care fees can be realised. Trusts can help reduce the unnecessary payment of some inheritance tax.

Question 4

Are Solidus Trust solutions expensive to set up?

Accepted Answer

No, as a proportion of the value that they protect it is typically much less than one percent of the estate value.

Question 5

Are Trusts expensive to run?

Accepted Answer

Most Solidus Trust solutions only have £10 in them until your client dies, so until then there may only be an occasional cost e.g. changing a Trustee. Some administration is required when the client passes away and assets need to be transferred into the Trust and then distributed to beneficiaries (usually as loans) but ongoing maintenance is usually minimal.

Question 6

Who should I advise my clients to nominate as Trustees?

Accepted Answer

More often than not the clients themselves and their adult children or other Beneficiaries act as Trustees. If this is not possible, other adult family members, or trusted friends can be considered. It would need to be someone they can trust to have the best interest of their Beneficiaries.

Question 7

How long does a Trust last for?

Accepted Answer

Most Solidus Trusts are Discretionary Trusts which last 125 years in England and Wales and 80 years in Northern Ireland. Most families use them for at least one further generation.

FAQs

Frequently asked questions