Trusts Solicitors Liverpool & North West London

The Settlor declares that they hold Property A on trust for the Beneficiary. This trust is common when an adult wishes to declare they hold land for a minor beneficiary (who cannot hold legal title until they reach the age of 18 years). Alternatively, a couple buying a house and contributing unequally to the purchase price may wish to record officially that they hold the property upon a 75/25 basis and provide an additional mechanism to reflect future improvement costs outlaid by one or other co-owner.

The Settlor may wish to provide a source of income to a vulnerable child but does not wish them to gain access to the capital, particularly if they have an addiction and or cannot manage funds in a sensible manner. The Life Interest Trust can enable the income to be directed to the vulnerable beneficiary and upon their eventual death the capital can be passed to the ultimate beneficiaries. For example, the fund to support the needs of a Settlor’s child and thereafter to the Settlor’s grandchildren

Often the actual beneficiary of the trust can be ‘unclear’. A Settlor may have a number of potential beneficiaries whose needs may be as of yet undetermined or whose needs are continually changing. An example would be a Settlor without issue who has a large number of young nephews and nieces with different financial and health needs. Rather than decide at the time the Trust is established, the Trustees can be provided with wide discretionary powers to enable them to assess the needs of any singular beneficiary from time to time

Technically a version of the Life Interest Trust discussed above, these have been marketed by unregulated advisers as the ‘answer’ to ring fencing assets against care home fees. Whilst any attempt to intentionally put assets beyond the reach of a credit is potentially subject to failure under the Insolvency Legislation, they can have their place within the overall financial planning of your affairs and may be an alternative to undertaking Lasting Powers of Attorney and Probate Applications.

These are an absolute must for any client who has received damages arising from a personal injury or  medical negligence case. The PI Trust is specifically granted by legislation with a unique character – the funds are held entirely for the benefit of the claimant who brought the litigation (who is both Settlor, Trustee and Beneficiary) but are totally disregarded for any ‘means testing’ undertaken by government and local authority departments. This means the compensation and damages award cannot affect any benefits received from the DWP and cannot be taken into account in future years if you were to enter a care home.

Our Private Client Department offers fixed fees. Please refer to Table 3 within our Costs Table.

See also our Guidance for Beneficiaries and Trustees: Personal Injury Trusts.