How Do Trust Funds and Wills in the UK – 2022 Guide

A trust fund is a legal arrangement in which one person, known as the settlor, gives property to another person, known as the trustee, to hold for the benefit of a third person, known as the beneficiary. The settlor may be the same person as the trustee or the beneficiary. Wills are legal documents that state how a person’s assets are to be distributed after their death. A will must be in writing and signed by the testator (the person making the will) in front of two witnesses. It must also be signed by the witnesses in front of the testator.

Trust Funds

Source: freepik.com

In the UK, there are two types of trust funds: testamentary and inter vivos. A testamentary trust is created by a will and only comes into effect when the person who made the will (the testator) dies. An inter vivos trust is created during the lifetime of the settlor (the person who creates the trust).

A trust fund can be used for a variety of purposes, including providing for young children, disabled persons or other vulnerable beneficiaries, and managing property or financial assets. The trustee(s) of a trust fund have a legal duty to manage the trust fund in accordance with the terms of the trust deed and any relevant legislation.

If you are thinking about setting up a trust fund, you should seek professional advice to ensure that it is set up correctly and meets your needs.

Wills

In the UK, a will is a legal document that sets out how you would like your estate to be distributed after you die. You can use a will to:

• Appoint executors to administer your estate.
• Appoint guardians for any young children.
• Make gifts of money or property.
• State your funeral wishes.

You do not have to make a will, but if you die without one, your estate will be distributed according to the intestacy rules. This means that your assets may not go to the people you intended, and it can cause additional stress and expense for your loved ones at an already difficult time.

Creating a will is relatively simple and inexpensive, and it gives you peace of mind knowing that your wishes will be carried out.

How to Set Up a Trust Fund or Will in the UK?

Source: freepik.com

When it comes to setting up trust funds or wills UK, there are a few things you need to know. First, you’ll need to decide what type of trust fund or will you want to set up.

There are many different types of trusts and wills, so it’s important to choose the one that best suits your needs.

Once you’ve chosen the type of trust fund or will you want to set up, you’ll need to gather all of the necessary documents. These may include things like asset deeds, beneficiary forms, and trusts deeds. You’ll also need to have a valid ID and proof of address.

Once you have all of the necessary documents, you can begin setting up your trust fund or will. You’ll need to appoint a trustee (or multiple trustees) and determine how the assets in the trust will be distributed. You’ll also need to set up a bank account for the trust fund or will and deposit money into it.

Trust funds and wills can be complex legal documents, so it’s important to seek professional advice if you’re unsure about anything. A solicitor can help you with all aspects of setting up a trust fund or will, from choosing the right type of trusts or wills for your needs to drafting the necessary paperwork.

What are the Benefits of Having a Trust Fund or Will?

There are many benefits of having a trust fund or will in place in the UK. Firstly, it can provide peace of mind knowing that your loved ones will be taken care of financially should you pass away. Secondly, a trust fund or will can help to avoid any potential disputes between family members over your estate. Thirdly, by specifying how you would like your assets to be distributed, you can ensure that your wishes are carried out exactly as you intend. Finally, setting up a trust fund or will can provide certain tax advantages which could save your loved ones money in the long run.

Who Can Access My Trust Fund or Will?

Source: freepik.com

If you’re the settlor of a trust fund or will, this means that you’re the person who created it. You can appoint trustees to manage your trust fund or will, and you can also choose who you want to benefit from it.

The trustee is responsible for ensuring that the terms of the trust are followed and that the beneficiaries receive their share of the assets. Trustees can be individuals or professional organizations.

The people who benefit from your trust fund or will are known as beneficiaries. You can choose to include anyone you like as a beneficiary, including family members, friends, charities, or even yourself.

How Do I Change or Cancel My Trust Fund or Will?

If you need to make changes to your trust fund, you’ll need to contact the trustee. The trustee is the person who manages the trust fund and can make changes on your behalf. You’ll need to provide them with details of what needs to be changed and why. Once the trustee has made the changes, they’ll send you a new copy of the trust deed for you to sign.

If you need to cancel your trust fund, this can be done by contacting the trustee and asking them to dissolve the trust. This means that all assets held in the trust will be distributed among the beneficiaries named in the trust deed. Again, you’ll need to provide details of why you’re canceling the trust and what will happen to the assets held in it. Once the trustee has dissolved the trust, they’ll send you a copy of the dissolution certificate for your records.

Conclusion

In the UK, there are two main types of trusts that can be set up – will trusts and living trusts. Will trusts are created when you die, and living trusts are created while you’re still alive. Both types of trusts have their own benefits and drawbacks, so it’s important to understand the difference before deciding which one is right for you. If you’re looking to set up a trust fund in the UK, we hope this guide has been helpful. We’ve outlined the main points to consider when choosing a trust fund, as well as some of the key differences between will trusts and living trusts. Ultimately, the decision of which type of trust to set up will come down to your individual circumstances.