Setting up a trust is a popular way of safeguarding sums of money and other assets such as land or property. However, a trust can also be set up by someone who is looking to financially protect and care for their loved ones, both during their life and after they pass away. 

At Raeside Chisholm, our lawyers have the knowledge to help you set up any kind of trust. If you require any advice or assistance, please get in touch now on 0141 248 3456 or complete our online enquiry form here.

Who is a vulnerable person?

When setting up a trust, it is important that you choose one that will suit the needs of the person who is to benefit from the trust, also known as the beneficiary. First, it is important to assess the beneficiary's circumstances - are they a vulnerable person?

A person will be classed as a vulnerable beneficiary if they are disabled or a bereaved minor. A disabled person is defined within trust law as a person who is incapable of administering their property or managing their affairs, due to a mental disorder within the meaning of the Mental Health Act 1983 or they receive or are entitled to receive any government welfare allowance, due to their disability. A bereaved minor is a person who is under the age of 18 and who has lost one or both of their parents.

Why set up a trust for a vulnerable person?

A trust can be used to provide financial stability for a vulnerable person throughout their life.

In a trust for a vulnerable person, the assets within the trust such as money, land or buildings can only be used to benefit the vulnerable person. However, the person in charge of the trust (the trustee) still has some discretion regarding how this should be done.

In a trust for a bereaved minor, when the child reaches the age of 18 they must get all of the trust assets, including any money, land or buildings.

Tax

Some trusts for vulnerable people, including Disabled Person’s Trusts and Trusts for a Bereaved Minor are awarded special tax treatment. This is one of the advantages of setting up a trust for a vulnerable person over a standard trust.

Disabled Person’s Trust

A disabled person’s trust is specifically set up with a disabled person as the beneficiary. As long as some relevant criteria are met, this kind of trust will not be subject to inheritance tax in the same way as a normal trust. Instead, it will be treated as if it is owned outright by the disabled beneficiary. This means that trustees will not incur capital gains tax or income tax charges.

Trust for a Bereaved Minor

This kind of trust can be written into a parent's Will. If that parent dies and leaves behind a child (or children) under the age of 18, that child will become the beneficiary of a trust for a bereaved minor. 

The trust must provide that all income is paid to the child on or before they reach the age of 18. This kind of trust has an advantage over a standard trust, in that it avoids inheritance tax while the trust is running for the child.

How do I set up a trust for a vulnerable person?

The wording of a trust needs to be precise, so it is important that you seek the help of a qualified solicitor. Our team has a wealth of knowledge in this area and are always happy to help. 

You may want to think about who is to benefit from the trust and who is to be in charge of the trust – the trustee. 

Trustees

Trustees have to be honest and act in good faith, with the beneficiary's best interests always in mind. You may wish to nominate a trusted family member or a close friend, or you may want to act as a trustee yourself if this is possible under your chosen trust.

Alternatively, you might want to consider nominating a professional trustee, such as a solicitor. Appointing a professional trustee can help ensure that the trust is carried out for its intended purpose. It can also relieve the burden of making sure all tax duties associated with the trust are fulfilled. 

Trust Administration Lawyers in Glasgow, Scotland 

Our trust administration team has lots of experience managing the day-to-day running of trusts, so take the pressure off yourself and speak to a member of our team today.

Call us now on 0141 248 3456 or complete our online enquiry form. 

Does your business need premises or do you need bigger, or smaller premises?

We have bought all types of commercial premises all over Scotland, for a wide variety of individuals and companies.

We know the best procedures to follow, and the pitfalls to avoid, and our commercial conveyancing lawyers will conclude the best deal for you, quickly and efficiently.

Timing is crucial, and we can help if you need things done quickly.

Of course, there will always be tax issues to be checked, and we will ensure that you are informed quickly and clearly of any tax liabilities that a purchase could involve.

We will make sure that you are aware of what needs to be done to keep your new premises in good legal and financal shape, and ensure that as a property owner, you know what your building requires from a legal and safety perspective.

Perhaps you have bought a commercial property at auction and needs lawyers? We will help, quickly and efficiently.

Perhaps you have bought a commercial property as an investment purchase, and there is a tenant in the property, paying rent? 

We act for many purchasers from all over the world, as well as many clients based in England who are new to buying commercial property in Scotland. We will keep things simple and clear. We will offer the same high levels of protection and security that you would have with a much larger law firm, but we will do so at sensible, down to earth fees- our prices will not restrict your business from growing.

If you need help with the requirements of your bank or funder, then we will easily attend to those needs, and make sure these are explained to you, simply, clearly and early.

Contact our Commercial Property Lawyer in Glasgow, Scotland

To find out how our commercial property lawyers can help you or to arrange an initial consultation with one of our solicitors, please complete our online enquiry form or contact us on 0141 248 3456.

A Power of Attorney is an essential future-planning tool no matter what stage of life you are at. In Scotland, everyone over 16 years old is presumed to have ‘legal capacity’ which means they can make their own decisions under the law. Ensuring you have a Power of Attorney allows you to prepare for a time where you may not be able to make decisions of your own accord, or where you need assistance to do so.

In this article, we will discuss:

• The law and mental capacity in Scotland
• What happens if you lose mental capacity and do not have a Power of Attorney?
• What type of Power of Attorneys do you need?

For advice specific to your circumstances, get in touch with our private client team today by calling 0141 248 3456 or completing the online enquiry form.

The law and mental capacity

If an adult in Scotland becomes incapable of making decisions about their welfare or finances, they are protected by the Adults with Incapacity (Scotland) Act 2000. The Act makes provision for safeguarding those who have lost mental capacity or the ability to communicate their needs, and those who wish to help them.

The Act sets out that a person may no longer have mental capacity if:

• they cannot make decisions or act on their decisions;
• they cannot effectively communicate their decisions or intentions;
• they cannot understand the consequences of their decisions; or
• they cannot remember the decisions they make.

Incapacity may apply to people who have mental incapacities such as dementia or a brain injury, and to those who are unable to communicate their wishes effectively as a result of physical disability.

The primary purpose of the Act is to allow people to plan for a time where they may no longer be able to make decisions for themselves. It is recognised that in many cases, a person’s mental capacity can change both in the short term and long term. As such, the Act sets out that an Attorney must be mindful of the person’s “present and past feelings and wishes as far as possible”.

A Power of Attorney document specifies who can make certain decisions, and how they should come to their decision. Although many will never need to rely on a Power of Attorney, it can be comforting to know you have one in place. 

What happens if I lose mental capacity and I have Power of Attorney in place?

It is a common misconception that if a person becomes ill or unable to make decisions for themselves, a family member – such as an adult child or partner – can simply step in and make decisions on their behalf. This is not the case.

Legally, no one is automatically awarded the right to make decisions about your welfare and finances, unless you have set up a Power of Attorney in advance. If you have failed to put a Power of Attorney in place, and you lose capacity, the person who wishes to make decisions on your behalf will need to go Court. The process of obtaining authority to make decisions on behalf of another person after they have lost capacity can be costly and may take a long time. It can also be challenging and stressful for your loved ones.

If you lose capacity and do not have a Power of Attorney, you are risking a person you would not have chosen to be appointed as your Attorney. By setting up a Power of Attorney, it can give you peace of mind that your affairs will be taken care of by the person of your choosing should they accept. This will also give you the chance to discuss your wishes in depth with your trusted individual to ensure they fully understand.

What type of Power of Attorney do you need?

There are four types of Power of Attorney available in Scotland. The type you require will depend on your circumstances, and the eventualities you wish to plan for:

Simple Power of Attorney

A Simple Power of Attorney is typically created for a set amount of time or to deal with a specific issue. An example of this is if someone is going into hospital for a set period of time and needs someone to make decisions on their behalf while they are away. It is essential to understand that a Simple Power of Attorney only lasts as long as you have mental capacity.

Continuing Power of Attorney (CPA)

A CPA enables you to appoint an Attorney to look after your property and financial affairs. Examples include managing your bank accounts or selling your home. When creating a CPA, you can opt to have the powers to become effective immediately or state that the powers only come into effect if you lose the ability to make decisions.

Welfare Power of Attorney (WPA)

A WPA allows your Attorney to make decisions about your health and welfare in circumstances where you are unable to make these decisions for yourself. Examples include medical treatment, where you live, and personal care decisions.

Combined Continuing and Welfare Power of Attorney

This type of Power of Attorney allows your Attorney to look after your financial affairs (like a CPA) as well as your welfare decisions (WPA).

Our lawyers will discuss your circumstances with you and set out your options clearly. We can help you and your family plan effectively for the future. Get in touch with us today.

Contact our Expert Power of Attorney Solicitors in Glasgow, Scotland

We understand that there are many things to consider when setting up a Power of Attorney, but our experienced solicitors can help. Our lawyers will set out all of your options clearly, providing practical advice and assistance at every stage of the Power of Attorney process. Please contact us now on 0141 248 3456 or complete our online enquiry form to arrange an appointment to have a Power of Attorney drawn up by our expert solicitors.

Are you selling your commercial premises, and perhaps your business as well?

We can attend to every aspect of the sale of your property, whether it be a shop on the main road, industrial unit, local convenience store, offices, pub, hotel or garage, we will look after your every need and provide clear guidance on every aspect of the sale.

Selling a commercial property is a journey, and we will guide you through the issues and pitfalls along that journey, ensuring you have the best, cleanest and most efficient sale of your property.

We will ensure that your ongoing liabilities are as reduced as possible.

We will help with the negotiation of the sales contract, and ensure everything is done efficiently, clearly, quickly and as cost-effectively for you as possible.

We know you want to keep things simple and keep things clear, and we will make sure that every step of the sale is explained to you in full.

Contact our Commercial Property Lawyer in Glasgow, Scotland

To find out how our commercial property lawyers can help you or to arrange an initial consultation with one of our solicitors, please complete our online enquiry form or contact us on 0141 248 3456.