Will Trusts

Will Trusts - why they are used

Do you need a Trust in your Will?

Trusts are normally used to protect or preserve assets so that your family and loved ones are well provided for.

A Will Trust enables you to have greater confidence and control in how your assets will be used in the future and are a way for families to securely hold assets and pass them from one generation to another. There are many reasons why a trust might be useful to include in your Will.

Circumstances, where trusts are used in conjunction with a Will:

Providing for loved ones

If you own your property jointly as a couple or if you live together and only one person owns the property.

Protect against uncertainty

To provide for vulnerable relatives who are unlikely to be able to look after their own affairs or where there are concerns over beneficiaries managing the funds adequately.

Keep assets within a family

If you are part of a blended family and wish to provide for a surviving spouse or partner after death while protecting the interests of any children from a previous relationship.

Useful for unmarried couples

If you are an unmarried couple with significant estates, you can use a trust to help reduce your inheritance tax liability as you can't use the spouse tax exemption.

Offers flexibility

Where there are more complex financial situations, with larger estates or assets or there are other factors such as divorce or ongoing family disputes.

Protect business assets

To help succession planning in a family business or to ensure your share in a business is dealt with properly, utilising any available tax benefits.

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Will Trusts Explained

What is a Will Trust?

In principle, a trust is a simple concept. A trust is the formal transfer of assets (for example property, shares or cash) to a small group of people (normally two or three) with instructions that they hold the assets for the benefit of others.

A Will trust is a trust that has been written into a Will and only comes into effect after you have died. You can amend the Will trust at any time whilst you are alive, which means that you remain in complete control of your assets during your lifetime.

The trust provisions are set out in the Will. The trust document will clearly identify the trust assets, who is responsible for looking after the assets (Trustees), who is the benefit from the assets (Beneficiaries) and any rules or conditions to which both the Trustees and Beneficiaries must adhere.

• The trust provisions are set out in your Will – a ‘Will Trust’
• The person who creates the trust is called the ‘Settlor’ or ‘Testator’
• The people asked to look after assets are called the ‘Trustees’
• The people who benefit from the trust are called ‘Beneficiaries’
• Assets placed in the trust are the ‘Trust Fund’ or ‘Trust Property’

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Everyone is unique.Your circumstances, family and financial situation are personal to you. I completely understand this and I provide advice, guidance and support tailored to your individual needs.​
What Will Trusts I offer

Types of Will Trust

Whether to include a trust in your Will is a personal choice that depends on your financial and family circumstances and what you wish your Will to achieve. Below is a brief overview of Will trusts that are used to help preserve and protect assets.
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Trust for Minors

These are referred to as Accumulation and Maintenance Trusts and are set up to look after monies for children. The idea is that the money is invested for the children until they attain an age specified by the Testator. The age can be from 18 upwards but the usual ages are 18, 21 or 25. (included as standard).

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Life Interest Trust

Normally used to ensure that a spouse or partner from a later relationship will not be deprived of a place to live. It ensures that any children from a previous relationship do not lose their inheritance if the surviving spouse or partner becomes involved in a new relationship after the Testator’s death.

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Discretionary Trust

It can be difficult to ascertain how much money a Beneficiary is going to need and when they are going to need it. A Discretionary Trust gives Trustees the power to manage funds in the best interest of a potential Beneficiary by giving varying amounts of money to a Beneficiary, as and when they need it.

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Protective Property Trust

Enables a client to ring fence 50% of the family home, to prevent the loss of their children’s inheritance should the surviving spouse or partner remarry. It can also ensure that the surviving partner is guaranteed a place to live for their lifetime and may prevent a proportion of assets being used to fund care home fees in later life.
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Flexible Life Interest Trust

This type of trust shares characteristics of both a life interest and a discretionary trust. It is, as the name suggests, flexible allowing for adequate provision for the surviving spouse and also other family members but also gives the Trustees the power to rearrange assets during their lifetime and convert the trust completely.

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Nil-Rate Band Discretionary Trust

This type of Trust may be helpful in reducing liability to Inheritance Tax, which is payable on death if your estate value is over a particular threshold. It is particularly useful for unmarried couples, as they cannot benefit from the spousal Inheritance Tax exemption.