Different Types of Trust
There are many different types of Trust, for use in different situations. We can help make sure you get expert legal advice about which is most suitable for your own circumstances.
Discretionary trusts are often suitable for beneficiaries with reduced capacity or those in receipt of means tested benefits and/or community care.
Assest held in a such a trust are not treated as belonging to the beneficiary and so benefits are protected. As the name suggests, the Trustees have discretion about how assets are used, if and when payments are made and to whom.
Liferent (or Interest in Possession Trust)
These trusts can be used to provide the beneficiary with a regular income or give them the right to live in a property. When the liferent ends another person, called the 'capital beneficiary' becomes entitled to the money and property held in trust.
This may be appropriate if you would like your child to continue to live in the family home after your death.
A bare trust is one where the beneficiary has an entitlement to trust capital and income. They are commonly used to transfer assets to people under the age of 16. In such cases, trustees hold assets in trust until the beneficiary is an adult.
Personal Injury Trusts
The term 'personal injury trust' just refers to the source of funds which can then be placed in a Discretionary, Bare or other type of Trust.