Interests in Trusts

Many individuals choose to put money in trust whether in their Wills or in their lifetime - for the benefit of their family, dependants and other beneficiaries, including charities.

There are many reasons for passing over monies in trust, including the desire to protect parties who are vulnerable, transmit monies between generations, while ensuring suitable protection for all, protecting against would be predators etc.

The scenarios envisaged by the settler of any trust may, in due course of time, no longer suit beneficiaries needs.

For example, those provided with an income for life may want capital, whereas those who are left funds, contingent on the death of say a parent, may wish to realise their interests earlier. Charities with great immediate needs may well wish access to monies and not have to wait for many years into the future. Alternatively, a trust may become too expensive to administer. In some situations, only one beneficiary may wish to realise his/her investment while others are content to receive benefits in the form provided by the trust.

In each of the above cases, values have to be placed on future benefits, which will be dependent on the survival of a particular beneficiary and perhaps the survival or otherwise of others. Account will have to be taken of the effects of taxation, as well as projected investment returns.

These are highly complex calculations and Nigel Sloam & Co offers a specialist service in this regard. The firm has considerable experience in such transactions, built up over the over 35 years of its existence.