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  • Writer's pictureThe Will Partners

What You should think about before setting Up a Trust


Whether you are an individual or a business owner, setting up a trust can offer numerous benefits, including asset protection, tax advantages, and estate planning. However, understanding how it works is crucial before you set up a trust.

A trust is a legal structure that provides a way to protect and manage your assets. With the help of legal professionals, setting up a trust can be smooth and with fewer complications. So, what are the essential factors to consider?

Seek Professional Advice

Trusts can be a complex legal arrangement, so seeking professional advice is one of the first steps. In our opinion, setting up a trust is NOT an “off the shelf” product. A good legal consultant will guide you and recommend the best trust structure for your needs.

Select The Right Type of Trust

There are various types of trusts and each is designed to serve different purposes. Understanding the features and benefits of each type is crucial in determining the most suitable trust option for your needs. For example, you can alter or adjust a revocable trust during the grantor’s lifetime, providing flexibility and control. In contrast, an irrevocable trust offers enhanced asset protection but you cannot easily modify or terminate this type of trust.

Appoint A Trustee

The trustee is the individual or legal professional responsible for managing the trust and its assets on behalf of the beneficiaries. Selecting a competent, trustworthy, and reliable trustee is critical for successfully managing a trust. Our clients normally appoint family members but you also appoint a friend, or a professional trustee. It is possible to have multiple trustees.

Fund The Trust

After setting up a trust, you must fund it by transferring assets into its name. This process may involve transferring property, investments or bank accounts. Considering the tax implications and legal requirements of transferring assets is crucial and regularly reviewing and updating the trust will help ensure it continues serving its intended purpose. We recommend producing annual minutes, signed by all trustee’s.

Understand Tax Implications

Trusts are subject to different tax rules depending on their type. For example, trusts may be subject to income, capital gains, or inheritance taxes. Talk to your Consultant about this.

Using Trusts for Business Protection

Trusts can offer several benefits for business owners. Here are some of them:

Asset Protection

One of the primary reasons business owners consider setting up a trust is to protect their personal and business assets from potential legal claims. By transferring business assets into a trust, you can separate them from your personal assets, shielding them from potential liabilities. Also, the assets held within the trust are generally not accessible by creditors. Thus, it provides an additional layer of protection for you.

Succession Planning

Setting up a trust can ensure a smooth transfer of business ownership and control to your chosen successors. A trust allows you to set specific conditions and guidelines for transferring business assets. For example, you may stipulate a certain age or level of experience for the beneficiary before they can assume control. Doing so helps ensure your business’s long-term stability and success by providing a clear, structured plan for its future management.


Successfully creating and managing a trust for personal and business purposes requires diligence, attention to detail, and ongoing maintenance. These things can help you adapt to changes in your financial situation and applicable laws. Seek professional advice and explore various trust types. This way, you can gain peace of mind that your family have financial security for many years….

Please contact us today to see how we can help you.


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