The Trust Is Dead - Long Live The Trust. A Client Update From Our Private Client Group

As estate planning or wealth management advisors, we often encounter historic trusts in practice.  However, there seems to be a popular misconception that trusts are less relevant in a modern context.  This thinking may derive from the fact that trusts are less attractive for resident and domiciled individuals as a tax mitigation device.  In this note, we set out the key features of a trust and where, in practice, we see a trust offering considerable value as a wealth planning device.

What is a trust?

A trust is legally binding agreement created by a settlor (the owner of the assets) who transfers some or all of their assets to an individual person or organisation (trustee) to manage the assets for the benefit of another (beneficiary).