Trusts provide protection for your assets (your estate) in the same way as the rich and famous do!

Trusts are very flexible legal documents that can have so many different benefits. There are trusts that can be set up in your lifetime or trusts that are part of your Will.

Despite what the media and Dave down the pub may say, trusts are relatively inexpensive when you consider the value they can provide!

So why use a trust?

  • Protects your inheritance if your beneficiary gets divorced
  • Protects a disabled beneficiary
  • Protects your children’s inheritance if your spouse re-marries
  • Protects your assets from financial threats such as bankruptcy and care fees
  • Protects the inheritance you leave someone (beneficiaries) from their own inheritance tax liabilities

All these unfortunate events happen every day in the UK. A simple low-cost trust can stop this from happening. As you’ve spent your whole life building your assets, why let it all go to the wrong people, just because you didn’t do a little planning?

What types of Trusts Are there?

There are numerous trusts, each with subtle differences in the way that they are written depending on the circumstances you use them for. For example:

  • A Discretionary Will Trust is a trust within your Will. This type of trust will not come into effect until you die.  A discretionary trust is one of the simplest types of trust but is a powerful tool in protecting assets for your beneficiaries.  This type of trust will not protect assets during your lifetime.
  • If you own a business, you will probably require a Business Trust and relates specifically to your business assets. There can be huge tax savings when using Business Trusts
  • If you are a farmer you would need an Agricultural Trust. Agricultural assets have their own specific rules which needs very careful consideration and planning.
  • Lifetime Trusts are another valuable set of Trusts. There are numerous lifetime trusts available coving most eventualities. As the name suggests, they receive assets in your lifetime.

What if I Choose a Trust?

A simple Will cannot always tackle the needs of a modern family or give you the amount of protection that a trust can give. By choosing the right Trust for your circumstances, you can gain benefits such as:

  • Protecting your assets from sideways disinheritance. This is where your children may lose claim on your assets if you remarry and then do not put appropriate planning in place.  If you die before your new spouse, your spouse could then leave all your assets to his or her children and leave your children with nothing.
  • Protecting an unmarried partner
  • Protecting vulnerable children
  • Preventing your inheritance from creating or adding to your beneficiaries Inheritance Tax Burden

Protecting your assets from care fees.