As specialists in our field, we understand that the terminology and vast amount of information on Trusts can sometimes be a daunting task, particularly with the gravity behind making decisions on trust funds.
For this reason, we’ve broken down the main types of trust funds for you below.
The Main Types of Trust Funds:
• Interest in Possession Trusts – The trustee must pass on all trust income to the beneficiary as it becomes available
• Discretionary Trust – The trustee can make certain decisions, based on their discretion, about how to use the income and occasionally capital in the Trust.
• Bare Trust – Is where the beneficiary has a right to both income and capital if over the age of 18.
• Accumulation and Maintenance Trusts (or A&M trusts) – Are types of discretionary trusts, where the trustees can accumulate income and add to the capital within the Trust for the benefit of children (under the age of 18).
• A Living Trust – Is ideal for those who have complex financial or personal situations. They can be updated (if revocable) as circumstances change or arise. Find more information here on living trusts on our living trusts page.
• A Pilot Trust – Allows an individual to receive funds or the estate from a legacy in their Will once they die. You can find more information on pilot trusts on our pilot trust page here.
• Bereaved Minors Trust – Is a trust for those under the age of 18 who have lost at least one parent or step parent.
• Trusts for Vulnerable People – To qualify for this kind of trust, the beneficiary must be under the age of 18 and has a deceased parent or is disabled. For more information on this, please contact us.
For more information or to talk to us further about creating a trust fund, please don’t hesitate to contact us. We are able to come to you, in the comfort of your own home, and your convenience.