Have you heard people you know talking about Trusts in Wills? If you own a property and/or have significant savings, you may benefit from a Trust in your Will. What is a Trust? A Trust is when you set aside your savings, investments or property for the...
Have you heard people you know talking about Trusts in Wills? If you own a property and/or have significant savings, you may benefit from a Trust in your Will.
What is a Trust?
A Trust is when you set aside your savings, investments or property for the benefit of whomever you choose, namely the ‘beneficiaries’. This could be your family members, friends or a charity that is close to your heart. A Trust can offer protections and can also be used as a tool to manage tax but caution is necessary when putting assets into a Trust, as you will no longer own the assets. Trusts generally fall into two categories – lifetime Trusts and Trusts on death. Trusts on death are created through a Will most of the time.
Who looks after a Trust?
A Trust is looked after by the ‘Trustees’. These are people that are appointed by you to manage the money or property that is in the Trust. They must always work in the best interests of the Trust, and they have various powers granted to them by the Trustee Act 1925, and often also by the STEP Provisions. They have the power to invest the money, and pay the income to the beneficiaries entitled to it, and in some instances, they can advance larger sums of money from the Trust to the beneficiaries from capital assets.
What Will Trusts could I consider?
Life Interest Trusts
These are Trusts that look after someone after you pass away by providing them with an income, and sometimes with a right to reside in your property, for their lifetime. These Trusts are often included in Wills by couples that are looking to not only care for their partner or spouse, but also protect their own share of the property, and sometimes cash assets, for other beneficiaries in case they pass away, if their partner/spouse changes their Will or goes into residential care.
What if I want someone to have a right to live at my property for only a few years?
If you own a property in your sole name and you want a family member or a friend to be able to stay in your home for a few years after your death, you can include a Trust in your Will that allows this. After the few years have passed, your home would then pass to whomever you choose.
Discretionary Trusts
These are Trusts that safeguard your assets, but the distribution of those assets is at the discretion of the Trustees. They are an effective way of providing for your loved ones whilst protecting your assets from being claimed if the beneficiaries divorce or go bankrupt. They can also be used as a way of safeguarding vulnerable beneficiaries.
If a Will Trust sounds like something that may be beneficial to you, our lawyers at Glanvilles Solicitors would be happy to help.
Contact Glanvilles Solicitors
Contact our Fareham office today on 01329 282841 or by email at hello@glanvilles.co.uk
Article written by Annija Gold, Solicitor within our Private Client team.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute, legal advice, and should not be relied upon as advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. All content was correct at the time of publishing. Legal advice should always be sought in relation to specific circumstances.