The following Private Client guidance note provides comprehensive and up to date legal information covering:
Before commencing work the solicitor drafting the settlement deed must be clear in their mind what they are seeking to achieve. The client's (settlor's) objectives may, for example, include the following:
a wish to confer benefits on members of their family or other individuals
to provide for someone who lacks the legal capacity for absolute ownership
to retain control of the devolution and management of family assets
to treat income and capital of a gift in different ways
to transfer the management of and responsibility for assets to trustees who may in, the settlor's view, have the necessary expertise and be better qualified to conserve and develop them
to prevent the dissipation of assets as a result of, for example, marriage breakdown
to shield themselves and their assets from future changes in legislation and to keep the trust property secure from creditors
to achieve confidentiality
There are a number of constraints on the settlor's intention to create a settlement. For example:
The settlor will not be able to deprive creditors of satisfaction by transferring property by way of voluntary settlement to other persons (usually family members) because by virtue of section 423 of the Insolvency Act 1986 (IA 1986), the court may set aside a transaction at an undervalue if satisfied that the
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