It is important to consider the legal, practical and tax implications before creating a trust as there are many types of trust to consider.
We will discuss with you your objectives and advise you on the most suitable trust for your circumstances.
A bare trust enables one or more trustees to hold a trust fund for the benefit of someone else (the beneficiary). If the beneficiary is an adult of sound mind they can request for the trust assets to be transferred to them at any time.
A charitable trust can be set up to benefit the public rather than a specific individual. It can be created during your lifetime or after your death in a will.
A discretionary trust allows the trustees to decide who from a group of beneficiaries receives what and when. No-one is entitled to anything from the trust without the trustees agreement. If you are considering setting up a discretionary trust you may want to consider appointing an independent professional who is not influenced by family issues and who will comply with your objectives for the trust.
An immediate post death interest trust is created by the will of a person who has died. An example of this may be where a husband dies leaving a will that provides for his wife to receive income from his estate during her lifetime and after her death for his estate to pass to their children.
A life interest trust entitles a beneficiary to the income of the trust for a period of time (or for life). When that interest ends, the trust fund passes to identified beneficiaries.
Offshore trusts are used to reduce tax by setting up a standard trusts under the laws of an offshore jurisdiction and are most beneficial to non UK domiciled people before they move to the UK and for asset protection usually where there is a “foreign element”.
A personal injury trust allows the damages received as a result of a personal injury to be paid into the trust. The damages (in the trust) are then not taken into account in the means testing process and any entitlement to income support should continue.
A pilot trust can be used for tax mitigation. It allows assets (usually money) to be received in the future reducing the IHT impact on the beneficiary’s death.
It is important to consider all of the legal, practical and tax implications before creating a trust. At Hart Brown our experienced team will guide you through the implications and help you set up a trust that best suits your objectives. We can also act as trustees of the trust.
To speak to a specialist lawyer who can advise on pilot trusts or any other type of trust call, email or request a call back.
Jordan is a Solicitor specialising in Wills, lasting powers of attorney and the administration of trusts and estates. He is based in the Trusts & Estates department in Guildford.
Jordan studied law at the University of Southampton, graduating in 2013. Whilst completing his LPC on a part time basis, Jordan worked in the firm’s quality and compliance department as the firm’s Chief Internal Auditor, before commencing his training contract in April 2016.
Having previously undertaken trainee roles in the Family and Residential Property departments, Jordan qualified into the Trust & Estates department where he completed his training.
What does Jordan regard as his specialism?
"The administration of estates and inheritance tax planning in equal measure. My experience of administering estates and calculating inheritance tax liabilities has provided me with valuable insight into how this particularly unpopular tax applies. This type of work has given me the tools to advise clients as to the steps they can take in advance to mitigate their exposure to inheritance tax. I pride myself on providing legal advice in a straightforward manner, cutting through the legal jargon. I always endeavour to work as efficiently as I can in order to provide the best level of service."
Jordan frequently receives great feedback from his clients:
"Hart Brown comes up trumps yet again"
“I appreciate your efforts and thank you for helping me to understand the process!”
"Thank you for your help, your ears will be burning, as I have been ringing your praises!!"
“Thank you for all your input, help and time - it has been much appreciated.”
“May I take this opportunity to thank you for your hard work and professionalism - it is a testament to all those who worked so hard on this case that it looks as though it will all be settled by the first year Anniversary. Quite remarkable!”
"I would like to place on record my appreciation of the efficient and quick service you have provided, particularly as I wished to have the new will in place before my departure on holiday."
A Partner based in Cranleigh, Louise is also Head of the Trusts & Estates team at Hart Brown and has extensive experience in a broad range of Private Client work.
Louise helps clients with all aspects of Private Client work and deals with the formation and administration of trusts, lifetime and post death planning and will drafting. She also works with other professional advisors to provide a complete package of advice.
Louise has considerable experience of applications for probate and estate administration often including complex issues and overseas assets. Additionally, she can help clients with Court of Protection matters including lasting powers of attorney and court applications for gifts.
"Louise Harrhy is highly experienced in probate applications and estate administration especially matters involving offshore assets. She is skilled in Court of Protection matters, including deputyships and lasting powers of attorney." (Chambers UK 2016)
"Louise Harrhy is a really driven and committed lawyer. She advises clients on a wide range of areas, including the creation of wills, the establishment of trusts and the administration of estates. Her work also incudes Court of Protection matters." (Chambers UK 2017)
Louise is also a member of The Society of Trust and Estate Practitioners.
Margaret is an Associate and specialises in wills, the establishment and administration of trusts, probate, tax planning, powers of attorney and court of protection work.
Margaret joined Hart Brown in 2017, bringing with her 25 years' experience to the Trusts & Estates department in Cobham. She has worked as a Private Client lawyer in Surrey for over 25 years, and is also a member of STEP and the Law Society Private Client Section.
Paul has a wealth of experience in wills, probate, trusts and inheritance tax planning, having specialised in this area for over 25 years.
He is a member of the Society of Trust and Estate Practitioners (STEP). In addition to his qualification as a solicitor, Paul holds the Securities Institute’s Private Client Investment Advice and Management professional qualification and the Chartered Insurance Institute’s Financial Planning Certificate (Cert PFS).
His clients value Paul’s undoubted expertise describing him as “of enormous help in all affairs" and "a source of wise counsel". A client recently stated that “It is a pleasure to deal with Paul Tobias. He has been helpful, friendly and is a real expert in the field of trusts and inheritance tax etc. I would not hesitate to recommend him to anyone in need of expert advice in this field”.
Paul is particularly keen on legal ways to avoid or reduce liability to tax. He also looks at the bigger picture. Recently a client consulted him about will planning. She mentioned a recent inheritance. Paul advised that it might be possible to use a deed of variation to reduce the IHT bill. The solicitor acting had not realised this. Time was tight but Paul fully investigated the position, verified that a deed of variation would be effective and completed a deed within a few working days. The result was a previously undreamt of reduction of IHT liability of around £140,000.
Paul trained at Hart Brown, qualified as a solicitor in 1980 and became a partner in 1983 until 2018.
Paul's clients often praise his work "Mr Tobias is very patient with elderly people and diplomatic and very pleasant to deal with. I rely on his very sound knowledge and good memory. He has dealt with family matters for me for the last twenty years."
Sue’s specialisms are wills, probate, tax planning and trusts.
Having qualified as a solicitor in 1994, Sue joined Hart Brown in 1997. She left in 2006 to look after her young family and returned in May 2010. “I am delighted to be back. Hart Brown has always been a lovely firm to work for and they really care about their clients which is also important to me” says Sue.
Sue's clients provide excellent feedback: "An excellent and efficient service. Would highly recommend to friends and family."
Helen is a Paralegal based in the Woking office and assists all Solicitors within the Trusts & Estates team, dealing with Wills, Powers of Attorney, Estate Administration, Court of Protection matters, and Trust work.
Helen has worked in the Trusts & Estates area for over 7 years, beginning as a Secretary in 2012, she then progressed to a Paralegal role in 2015, and joined Hart Brown in January 2019.
Helen is currently studying for a law degree, with a view to progressing her career and eventually qualifying as a Solicitor.
Helen enjoys helping clients who may be going through a difficult time in their life, by lifting the burden of stress which can be felt, when dealing with the estate or affairs of a loved one.
Lisa is an Associate Solicitor in the Trusts and Estates department, primarily dealing with estate administration, wills, estate and inheritance tax planning, powers of attorney (preparing, registering and managing affairs under one), deputyships (setting up and managing affairs), general Court of Protection work and setting up and administering trusts and charities.
Lisa qualified as a solicitor in 2002 and gained significant experience in London and Surrey until 2006. Lisa then took a career break, returning to law in 2013.
Lisa has been praised for her clear, kind, patient and straightforward approach and she enjoys helping clients of all ages, including those clients who are nervous of seeing a solicitor in difficult circumstances.
Lisa grew up locally and likes to be involved in her local community. She enjoys walks in the Surrey countryside, spending time with her family and dogs and visiting the West Country.