http://BusinessAndLegal.ie Creating a trust when you make a will in Ireland can give you great benefits. This looks at the law surrounding will trusts which are becoming increasingly popular.

1. 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.
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2. 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
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3. But it is not foolproof and can be
attacked and unravelled by
creditors hand you may have assets,
 On the other


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.
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4. Types of Trust
a discretionary trust
 a trust for sale
 a Settled Land act trust
 an interest in possession/fixed trust.

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5. Discretionary Trusts
A 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.

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6. A discretionary trust is useful
where
There are young children
 The 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.

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7. Trusts for Sale
This 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.

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8. To incorporate such a trust in a
will you need to first decide:
Who are the trustees and
 What is the trust property.

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9. Settled Land Act Trusts
A “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.

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10. An example of a settlement
would be
To 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.

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11. Fixed Trusts/Interest in
Possession Trusts

A fixed trust is one in which the
interests of various beneficiaries are
fixed at the time of the creation of the
trust.
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12. They can be very useful to
Create an immediate interest in
possession eg a life interest
 Provide 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.

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13. The Land and Conveyancing
Law Reform Act 2009
The 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.

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14. Terry Gorry & Co. Solicitors
“Innfield House”
 Main Street
 Enfield
 Co. Meath
 Call: 046/95 49 614 or 086/81 21 797
 Email: terry@businessandlegal.ie
 Web: http://BusinessAndLegal.ie

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