Common Issues with Managing a Trust

Trusts are an important element of estate planning with various benefits such as wealth protection,  limiting tax liabilities, and safeguarding assets for future generations.

When setting up a trust, it is crucial to be aware of common issues that may arise to avoid potential pitfalls. Consulting a specialist solicitor is essential to guide you through the process; from creation to final administration and to protect your interests in the event of disputes.

Appointed trustees are responsible for executing the settlor’s wishes and acting in the beneficiaries’ best interests. Trustees must fulfil various duties, such as adhering to the Trust Deed, making payments to beneficiaries, maintaining records, managing assets, filing tax returns, and following applicable laws. To handle these responsibilities effectively, trustees often seek guidance from solicitors or may appoint legal representatives as trustees.

Managing a trust can result in various issues, such as disputes over authority, allegations of mismanagement, failure to transfer assets into the trust, issues with beneficiaries, ambiguous language in the trust document, and lack of regular reviews. A trust should be reviewed at least once per year, with trustees meeting to discuss strategy and check that everything remains fit-for-purpose. Settlors should also ensure that the trust is up-to-date and accounts for major life changes — such as marriage and divorce, or the birth of children/grandchildren.

Thursfields’ Private Client team offers tailored legal advice on trust administration, from planning to dispute resolution. Settlors can expect clear and thorough trust documents reflecting their wishes, while trustees receive targeted advice for fulfilling their obligations.

Contact Thursfields’ team for more information on 0345 207 372 8 or or find out more by visiting: 6 Common Issues with Managing a Trust | Thursfields Law Firm

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