A Trust is a relationship created at the direction of an individual (“the Settlor”) in which one or more persons (“the Trustees”) hold the Settlor’s property (subject to certain duties) to use and protect for the benefit of others (“the Beneficiaries”).

Settlors may control the distribution of their property during their lives or after their deaths through the use of a trust. There are many types of trusts and many purposes for their creation. A trust may be created for the financial benefit of the Settlor, a surviving spouse, minor children, or a charitable object. Though a variety of trusts are permitted by law, trust arrangements that are attempts to evade creditors or lawful responsibilities will be declared void by the courts.

Trust law is often complicated, but generally it is concerned with whether a trust has been created, whether it is legal, and whether the Trustees have lawfully managed the Trust and the Trust property.

A simple explanation of a trust (courtesy of Craig Ward of www.lawtalks.co.uk) is: “If I gave you a Mars Bar to give to someone else tomorrow and tomorrow you had eaten it, you would be in breach of trust law!”

Why? Because while the Mars Bar is in a state of trust nobody owns it. The final recipient only stands possessed of it when he or she unwraps the bar and takes a bite. In the meantime the bar is technically protected from any third party stealing a bite.

If you have ever considered setting up a trust to help save on Inheritance Tax, or to protect a Beneficiary from any form of loss, then please contact us to discuss your options.