TRUSTS
A Trust is a legal arrangement will allows you to transfer some of your assets to one person (the Trustee) who accepts those assets for use, not by themselves, but for the benefit of someone else of your choice.
For example: Loving grandparents giving a lump sum of money for a cherished grandchild, but only for that grandchild to receive it when they reach a certain age, or to assist them with their future education costs when they are 18.
Another example:
Jack and Jill buy a house together. They are both going on the mortgage and both will have their name on the title deeds of the house. Jill is paying £4,000 toward the deposit but Jack, with help from his parents, is paying £35,000 toward the deposit.
In this case, a trust agreement can be set up to record that huge cash deposit difference. It can record that when the house is eventually sold, before the proceeds are divided 50 – 50, they each must each take back their deposit. Therefore Jack will get back his £35,000 and Jill will get back her £4,000. Only then will the proceeds of sale be equally divided.
Surly this is only fair? Because if Jack had failed to do this, he would have lost control of his larger deposit. And his parents would have wasted that money.
There are so many trust options available, including as part of a well-drafted Will. Contact us now to make an appointment to discuss your trust ideas and together we can find out how this can work for you.