will trusts in ireland-why set up a will trust?

http://BusinessAndLegal.ie

Will Trusts in Ireland-Why Set Up a Will Trust?What appears to be one of the

most boring topics imaginable has been the subject of closer scrutiny by those looking to put assets beyond the reach of creditors.


Why Set Up a Trust?If you have significant debt

problems and are looking to put assets out of reach of creditors, a trust can be a very useful device


But it is not foolproof and can be attacked and unravelled by creditorsOn the other hand you may have

assets, no debt problems, but the person(s) who you would like to give those assets to may have debt issues.

And you are afraid that those hard earned assets of yours will eventually end up in a great big pot for distribution to the creditors of your loved one.

This is the type of circumstance where a trust may be more usefully deployed…provided it is drafted correctly.


Types of Trusta discretionary trusta trust for salea Settled Land act trustan interest in possession/fixed

trust.


Discretionary TrustsA discretionary trust fund is one

where the only interest that potential beneficiaries have is the right to be considered for an appointment of property.

The beneficiaries do not have an absolute right to the trust fund so do not have an interest in possession.


A discretionary trust is useful whereThere are young childrenThe testator wishes to postpone

mainstream capital acquisitions tax

The testator wants to adopt a “wait and see” approach to see how potential beneficiaries will turn out.


Trusts for SaleThis trust is where the trustees

are under an obligation to sell, invest the proceeds and hold the proceeds on the terms of the original trust.

This type of trust puts the trustees in control of the timing of any sale of trust property and they cannot be forced to sell, even if a beneficiary wants them to do so.


To incorporate such a trust in a will you need to first decide:Who are the trustees andWhat is the trust property.


Settled Land Act TrustsA “settlement” is where real

property is held by a succession of interests or where a minor has an interest in property.

Settled Land Act Trusts are very useful for the protection of a life tenant who has the power of sale under the Settled Land Acts.


An example of a settlement would beTo my wife for life and thereafter

to my son Sheamus.One of the benefits of this type of

settlement is to fix the time at which an interest will vest in the remainderman (Sheamus above) and to postpone the payment of tax to sometime int eh future.


Fixed Trusts/Interest in Possession TrustsA fixed trust is one in which the

interests of various beneficiaries are fixed at the time of the creation of the trust.


They can be very useful toCreate an immediate interest in

possession eg a life interestProvide clarity as to who will get

the trust property at a fixed time in the future

Allow a testator to postpone the vesting of an interest until a beneficiary reaches a certain age

Avoid discretionary trust tax provisions.


The Land and Conveyancing Law Reform Act 2009The Land and Conveyancing Law Reform Act 2009

has made significant changes to trust law in Ireland eg the Rule Against Perpetuities which may have affected a trust has been abolished.

It introduced a simpler way of dealing with trust land which up to then had been governed by the Settled Land Acts, 1882-1890.

The 2009 Act covers all trusts of land ,whether created by will or otherwise.

It also sets out the powers of trustees of land, procedures for resolution of disputes, jurisdiction of the Courts to vary and make other orders in relation to trusts, and offers protection for purchasers of trust land.


Terry Gorry & Co. Solicitors“Innfield House”Main StreetEnfieldCo. MeathCall: 046/95 49 614 or 086/81 21

797Email: [email protected] Web: http://BusinessAndLegal.ie

mailto:[email protected]

http://businessandlegal.ie/

will trusts in ireland-why set up a will trust?

News & Politics