Trust Solicitors, Scotland

A Trust is a legally binding arrangement designed to manage money or assets for the benefit of specific individuals. In Scotland, when you establish a Trust, you have the authority to select trustees responsible for overseeing the Trust and determine the beneficiaries who will receive its benefits. Even after placing assets into a Trust, they can continue generating income – properties can yield rent, shares can accrue dividends, and money can earn interest. This income can either be retained within the trust or distributed among the beneficiaries.

It's important to note that asset values within a Trust may fluctuate over time, and it is the Trustees' duty to handle these fluctuations in the best interest of the beneficiaries. Consequently, trusts may be subject to taxation at times. However, in certain cases, putting assets into a Trust and receiving income as a beneficiary can offer more tax-efficient advantages compared to receiving the income directly. At Jones Whyte, we can guide you through the intricacies of Scottish Trust law, helping you maximise the benefits.

You have the freedom to select anyone as a beneficiary for your Trust. More than one beneficiary is also allowed, and can be made up of the following:

1. Specific, named individuals.

2. Classes of people, such as ‘my grandchildren and their descendants.’

3. Charities or charitable organisations.

4. Other groups, like companies or sports clubs.

Opting for a class of beneficiaries allows you to include individuals who may not have been born yet, ensuring your Trust can benefit your family for generations. Beneficiaries can also serve as Trustees in the same Trust that benefits them.

For discretionary Trusts with significant Trustee freedom, it’s advisable to have at least one non-beneficiary Trustee to ensure the Trust is administered in line with your intentions.

At Jones Whyte, we can help you create a Trust tailored precisely to your needs and ensure your family’s future is secure.

To establish a Trust, you must draft a declaration of Trust, a crucial document outlining specific details about the Trust’s management. This declaration should cover:

1. Appointment of Trustees.
2. Beneficiaries of the Trust.
3. Assets to be included in the Trust.
4. Desired asset management.
5. Distribution of benefits.

Our team of specialist lawyers can provide guidance on these decisions, helping you choose the most effective arrangements to benefit your beneficiaries.

Although it’s possible to create a declaration of Trust independently, Trust law is intricate, and the document requires meticulous wording to safeguard your assets as intended.

By obtaining an expertly-written declaration of Trust from our highly experienced team, you can ensure that your desired outcomes are secured.