Trusts are commonly used to preserve your assets and ensure that the beneficiaries that you ultimately want to benefit from your estate (usually your children) do actually benefit.
Trusts can be set up during your lifetime or under your Will in which case they will not come into operation until after you have died.
You may wish to consider setting up a trust during your lifetime or incorporating a trust into your Will for one or more of the following reasons:
- Protection of Assets – assets can be transferred to a Trust to protect against the possibility of losing the assets as a result a beneficiary being made bankrupt at some future date or to protect assets from long term care fees should the person creating the trust be declared bankrupt or go into long term care.
- Marriage and divorce –assets are sometimes placed into Trust so that they will be less vulnerable should a beneficiary have marital difficulties.
- Re-marriage after death – on the first death all the assets may be solely owned by the surviving spouse/partner. If the surviving spouse/partner subsequently remarries the inherited assets may be lost to that new spouse thus, disinheriting your children.
- Protecting beneficiaries – parents may put assets into Trust to benefit from Inheritance Tax exemptions. A parent may also wish to retain control over assets until their children are financially responsible or to protect from a rogue partner. Still other beneficiaries may require protection due to a mental or physical disability.
- Receiving a lump sum of money may result in a beneficiary losing benefits that they are entitled to due to disability and ensures that the money is well looked after by people that you trust.
Contact Jonathan Jacobs, Tsyrina Tan, Karin Cox-Putker or Jessica Williams for further information, or to arrange a meeting. In all cases we will give you an indication of the level of costs likely to be involved and details of relevant charging rates.