Family Trusts

Family trusts are legal arrangements where assets such as cash or investments are managed by a trustee for the benefit of one or more family members. These trusts can be used for managing assets for vulnerable people, or to assist with estate planning, protection of assets and tax optimisation (as the assets in the trust are typically not considered part of the individual's personal estate). Setting up a family trust in Ireland requires careful consideration of the legal and tax implications, and also of the goals and needs of the family members involved.

Uses of Trusts

At the most basic level, a trust exists where someone (called the settlor) transfers property of any kind to one or more people (to the trustees, who hold it for the benefit of others, who are the beneficiaries). While trusts vary and the rules can be complex, the basic idea is simple. Trusts are asset-owning vehicles that can support both current and future generations, for individuals, families and businesses. Common reasons for creating trusts include:

• Family protection: Safeguarding assets for the benefit of children or vulnerable family members.

• Asset preservation: Preserving family wealth.

• Asset protection: Protecting family assets against the claims of others.

• Business preservation: Ensuring the continuation of a family business.

• Tax planning: Mitigating the impact of taxation.

• Estate planning: Providing flexibility around the timing and terms of asset distribution.

• Court orders: Implementing court orders following a personal injury award, divorce or the dissolution of a civil partnership.

Our services

In many private situations, a family member may be appointed as a trustee. However, there can be benefits to using a professional trustee instead of, or in addition to, a family member.  A professional trustee will be able to act impartially and independently and can also provide the required objectivity. A professional trustee is also better equipped to deal with the complex tax and regulatory issues which often arise.

While most of our trust clients are Irish, we also have international trust clients, for whom specific regulatory rules apply.

Our private trust practice has grown significantly and now holds around €120 million under trust.

The ITL trustee team includes solicitors, administrators and trust practitioners. We also work closely with a range of investment managers and tax advisors. Having this in-house and outsourced expertise ensures that we fully understand the relevant legal and tax considerations to be addressed – and can work efficiently with professional advisers to the trust.

Please contact our team of pension trustee experts for further information.