Will Trusts

Trusts, managed by carefully selected trustees, can provide that extra piece of mind in scenarios where the intended beneficiary might not be capable of taking control of assets all in one go.

Another scenario where Trusts should be considered in a Will is when looking at succession planning for a blended family. A Trust can be used as a strategic part of estate planning to ensure that your estate is safeguarded and distributed the way you would like after death.

However, Trusts can also be very beneficial when set up during your lifetime for a number of different reasons. Most often, these reasons are for:

• Later life planning – for example, planning in case you might need to consider how to fund future care needs or move into a care home
• Compensation award management – for example following personal injury or similar awards made following legal proceedings
• Inheritance Tax planning – the use of Trusts can help reduce or even eliminate inheritance tax, ensuring more of your wealth are passed to your loved ones and chosen beneficiaries
• School fee planning by grandparents – trusts can be an excellent way of allowing for grandparents to assist with meeting their grandchildren's school or tuition fees and, if structured correctly, this can also help the grandparents reduce their potential inheritance tax liability
• Managing assets through a charitable trust - It is not uncommon for wealthier clients to set up their own charitable Trust which can be managed by Trustees to contribute to the clients’ preferred charitable causes. As well as supporting good initiatives, there are various tax benefits to managing contributions in this way.

Trusts are an important tool in estate planning that should not be overlooked.