Trusts
Trusts are often combined with a tailored will, to protect assets for children until a later date or help look after a vulnerable beneficiary without affecting their benefits, for example. Trusts can be set up in advance of your death too, which can help to protect assets from Inheritance Tax when they’re passed on.
There are several different types of trust, including:
Standard Asset Trust
Also known as a Living Trust, this is like a will but allows you to pass on your inheritance before you die. It protects assets like your house, savings and investments so their full value can be passed on.
Family Asset Protection Trust
This not only protects your assets so they can be passed on as you intend, but also includes an Immediate Post Death Interest Will Trust to provide your spouse or civil partner with support when they need it most. The Trust minimises potential fees and delays from probate, and can also help beneficiaries mitigate future Inheritance Tax liabilities.
Protective Will Property Trust
A trust designed to protect against care fees, creditors’ claims or Inheritance Tax eating in to the value of your home, so your loved ones get the maximum benefit.
Inheritance & Legacy Trust
This can greatly reduce the impact of Inheritance Tax by providing a structured legal framework to enable you to pass on your wealth efficiently with the assets in the trust protected from risks such as remarriage, divorce or creditors.
Common Intention Trust
This legally recognises that while only one name may appear on the title deeds, more than one person has an interest in a property. It’s typically used when a parent owns the property an adult child lives in, or when only one partner is named on the deeds.
Vulnerable Persons Trust
A legal framework to protect assets on behalf of a vulnerable beneficiary. It ‘ring-fences’ compensation payments, grants or other financial assets, so they won’t usually be taken into account when being assessed for other benefits.
Immediate Post-Death
Interest Will Trust
This is designed to come into effect as soon as you pass away, and offers your spouse or partner the right to income from or use of trust assets immediately – giving immediate support while adding tax efficiency and protecting your legacy for your children.