What happens to property left in a trustUnderstand how trusts impact property ownership and inheritance
What is a trustA trust is a legal structure that allows property owners to transfer assets while managing Inheritance Tax
Who is involved in a trustA trust involves a settlor who creates the trust, a trustee who manages it, and a beneficiary who receives income or assets
Types of trusts for property ownersA bare trust gives full control at 18, an interest in possession trust provides income without ownership, and a discretionary trust allows the trustee to decide distributions
More types of trustsAn accumulation trust reinvests income, a mixed trust combines benefits, a disabled trust offers tax relief, and a non-resident trust applies to trustees outside the UK
Why set up a trustTrusts help pass assets to future generations, protect property from creditors, provide for minors, and allow control over how assets are distributed
What happens to property in a trustA spouse may be granted life interest to live in the home, the trustee manages maintenance costs, and if sold, the proceeds are split according to the trust deed
Things to consider before setting up a trustChoosing the right trustee, creating a clear trust deed, registering with HMRC, informing the land registry, and maintaining financial records are all essential steps
Should you put a property in a trustSetting up a trust is a serious financial decision that requires legal and financial advice before moving forward
Need help with property and trustsBenham & Reeves provides expert advice to help you make the right decision