Family Trusts are not considered self-confidence under UK law. They must be assigned to one of the specific types of authorized trusts. These include:
• Bare Trusts - As the name implies, this is a pure trust where assets are transferred to a trustee until the beneficiaries are granted the right to receive income and / or capital in accordance with the terms of the trust agreement. For example, when each beneficiary reaches the age of 18. Typically, naked trusts are created for the benefit of the settler's minor children.
• Discretionary Trusts - This type of trust allows the trustee to decide how the trust income and / or equity can be used. For example, a trustee can decide which beneficiaries and when they can receive trust income or equity, or how often payments are made, or impose conditions on beneficiaries. Discretionary trusts are often used when specific beneficiaries may need more income than others, such as a grandchild's university education or a sick child in need of hospitalization.
• Interest in holding trusts - this type of trust requires the trustee to transfer all proceeds as they arise to the beneficiaries. For example, after the death of the founder, all shares in the family business are transferred to the beneficiaries or exclusively to the spouse.
• Accumulation Trusts - The Trustee can accumulate all income and increase the capital of the trust without distributing it among the beneficiaries.
• Establish interested trusts - where the trustee or spouse (or civil partner) benefits from the trust. This may include obtaining trust income and / or equity. For example, if the settlor retires or is unable to work, the trust provides income.
More information here - https://en.wikipedia.org/wiki/United_Kingdom
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