There are many different types of trust which you can create. Therefore, if you’re looking to create a trust, it’s always best to first discuss what terms and conditions of your trust with a trust solicitor. However, to get an idea of different types of trusts you can create, below our trust solicitors have listed some of the most common.
- Qualified terminable interest property trust. This trust allows you to give assets to specific beneficiaries at separate times. For example, you may decide for your spouse to receive a lifelong income from the trust, and when your spouse passes away, your children will inherit the remaining amount.
- Generation-skipping trust. This form of trust allows a person to transfer assets tax-free to beneficiaries at least two generations younger, usually their grandchildren.
- Charitable trust. This form of trust is beneficial to charities, and it can be a method of reducing or avoiding estate and gift taxes. For example, a charitable remainder trust will provide an income to your beneficiaries (your spouse or children, for example) for a specific amount of time and then donates the remaining assets to charity.
If you have any questions regarding a trust you’re looking to create, please get in contact with one of our solicitors directly on 020 3007 5500.