Trust agreements are legal ways for your investments to be held to help minimise your tax liability. However, they can be complex, so you should seek professional advice if you are considering or setting up a trust.
A trust is usually created for a variety of reasons. These can include the control of gifted assets, for example, who may receive them and when a trust may be put in place to reduce potential tax liabilities. Generally, a trust will ensure the beneficiaries have either an absolute right to any income and capital or they may have an entitlement to the income only. On occasions the trustees will have either the discretion or power over the trust to pay or advance income or capital, or both, to the beneficiary.
It is vital to understand what the various trusts allow you to do before you decide which set-up to use, hence we suggest you speak to websters legal and financial experts.