What is a Trust?
A Trust is exactly as the name implies. A very good way to imagine a trust is that you gave money to someone you know – a close friend or a relative, and asked them to look after this money on your behalf, to use it to pay for your care if you got ill and became unable to allocate funds to your own care yourself. There are a series of factors which may encumber or prevent someone from using their own money to look after their own well-being in the case of illness, and of course while very sad, it’s a fact of life that bestowing a vast amount of money (and trust) on someone can mean that this money may be used improperly, and could be misused. Proving misuse in the case of verbal agreement is impossible, and the risk of being manipulated is sky-high. Therefore instead of verbal assurance, a trust is an extensive and complicated contract that details how money is to be used, according to rules you set out. There is a downside – setting up a trust is rather complicated. Therefore, we recommend that you use a Solicitor in North Wales to avoid costly mistakes.
Officially, a trust is a legal arrangement where one or more people, or even a Company (referred to as trustees) controls monies and/or assets (called a trust property) which they must use for the benefit of one or more people. (referred to as beneficiaries). Of course, all trust properties are subject to taxation, though trust funds are the safest way to support someone who cannot manage their money or becomes unable to do so. For many, trust funds are a viable and ironclad way to make sure that their own money is used to look after them, loved ones, or their children in the event they ever become unable to themselves.
Trusts are not simply for the rich. They can be very useful in the event looking after children that will remain dependent for the entirety of their lives, and can prevent worries in regard to how they will manage financially after their parents or carers have passed away. Furthermore, trusts can also assist those with mental health conditions or learning disabilities who are claiming state benefits such as Disability Living Allowance. Trustees may be family members or friends, though in the instance of familial distance or no family members to speak of, many specialist Trust Solicitors in the North Wales area offer advice for existing or new clients on their individual problems and can even act as Trustees themselves.
Trusts have become more and more complicated as legal matters continue to change, but they’re still a solid bet for anyone that wants peace of mind when it comes to how their money will be used, in what can be very trying times.
