If I was given a pound every time that someone said that their new Will would be “a simple one” or that their existing Will only needed “a tweak” I'd be rich. In many cases that's true but often it is not. ...
A trust comes into effect when a ‘settlor’ places money, land or other assets in the hands of trustees. The trustees are the legal owners of the property but are obliged to hold and manage the property for the benefit of a person or a group of people, who are called beneficiaries.
There are several types of trust:
In this type of trust, sometimes called a ‘Simple Trust’, the beneficiary has an immediate and absolute right to the property in the trust. The trustees have no discretion as to how the fund is managed. They must manage the trust assets for the maximum benefit of the beneficiary. The income of these funds is taxed as if it is the income of the beneficiary. Parents or grandparents can be trustees of a Bare Trust for their children or grandchildren.
Here the trustees have discretion over to whom and when payments should be made and also whether conditions should be attached. They are usually given discretion as to the investment of the fund. This type of fund may or may not be allowed to accumulate income. Discretionary Trusts are often used when there are worries that a beneficiary may act irresponsibly if given assets outright.
Accumulation and Maintenance Trust (A&M)
In an A&M Trust, the settlor places money in trust for children/grandchildren until they reach a specified age (maximum age 25), when they become entitled to the trust fund. A&M Trusts are used to provide financial support for younger family members. Until 2006, they had favourable tax treatment, but they are now less ‘tax friendly’.
Interest in Possession Trust (IIP)
Here, the beneficiary has a right to the income but not the capital of the trust fund. For example, a beneficiary may be allowed to receive the income arising from shares during their lifetime, with the shares going to their children on their death.
Kama ningepewa pauni kila wakati mtu alisema kwamba mapenzi yao mapya yangekuwa "nyenyekevu" au kwamba mapenzi yao yaliyopo yanahitaji tu "kurekebisha" ningekuwa tajiri. Katika visa vingi hilo ni kweli lakini mara nyingi si kweli. ... uaminifu huanza kutumika wakati "settler" huweka pesa, ardhi au mali nyingine mikononi mwa wasimamizi. Wadhamini ni wamiliki wa kisheria wa mali lakini wana wajibu wa kushikilia na kusimamia mali kwa faida ya mtu au kikundi cha watu, ambao huitwa watendaji. Kuna aina kadhaa za uaminifu: Katika aina hii ya uaminifu, wakati mwingine huitwa "Uaminifu rahisi", mteja ana haki ya mara moja na kamili ya mali katika uaminifu. Wadhamini hawana uhuru wa kuamua jinsi mfuko huo unavyosimamiwa. Ni lazima kusimamia mali ya amana kwa manufaa ya juu ya mteja. Mapato ya fedha hizi ni kodi kama kama ni mapato ya mteja. Wazazi au babu na nyanya wanaweza kuwa wadhamini wa uaminifu wa Bare kwa watoto wao au wajukuu. Hapa wadhamini wana busara juu ya nani na wakati malipo yanapaswa kufanywa na pia ikiwa masharti yanapaswa kushikamana. Wao ni kawaida kupewa busara kama kwa uwekezaji wa mfuko. Aina hii ya mfuko inaweza au haiwezi kuruhusiwa kukusanya mapato. Uaminifu wa hiari mara nyingi hutumiwa wakati kuna wasiwasi kwamba mteja anaweza kutenda bila kuwajibika ikiwa anapewa mali moja kwa moja. Katika amana ya A&M, mkataba huweka pesa katika amana kwa watoto au wajukuu hadi kufikia umri maalum (umri wa juu wa miaka 25), wakati wanapata haki ya fedha za amana. A&M Trusts hutumiwa kutoa msaada wa kifedha kwa wanachama wadogo wa familia. Hadi mwaka 2006, nchi hizo zilikuwa na hali nzuri ya kodi, lakini sasa hazina hali nzuri ya kodi. Interest in Possession Trust (IIP) - Msaada wa fedha una haki ya kupata mapato lakini sio mtaji wa mfuko wa amana. Kwa mfano, mrithi anaweza kuruhusiwa kupokea mapato yanayotokana na hisa wakati wa maisha yake, na hisa kwenda kwa watoto wake baada ya kifo chake.