What is a Trust Fund?
A trust comes into effect when a ‘settlor’ places money, land or other assets in the hands of trustees. The trustees are the legal owners of the property but are obliged to hold and manage the property for the benefit of a person or a group of people, who are called beneficiaries.
Types of Trust
In this type of trust, sometimes called a ‘simple trust’, the beneficiary has an immediate and absolute right to the property in the trust. The trustees have no discretion as to how the fund is managed. They must manage the trust assets for the maximum benefit of the beneficiary. The income of these funds is taxed as if it is the income of the beneficiary unless the donor is a parent, in which case the trust income is normally taxed as ...
It is a source of concern to lawyers and families alike that the majority of people never make a will. Often, the intention to do so is there, but somehow the person never seems to ‘get around to it’ and dies or becomes incapable before a will can be made.
It is possible, however, for a will to be written for someone who lacks the mental capacity to do so. The Court of Protection can, when there are objectively reasonable grounds for doing so, order that a statutory will is created. Such a will can be a variation on an earlier will, for example where a change in a person’s circumstances means that their will is no longer appropriate, or, where there is no earlier will, a will can be written from scratch to prevent the estate being distributed ...