TRUST PLANNING – WHAT IS A TRUST?
WHAT DOES A TRUST DO?
TRUST PLANNING TO PROTECT YOUR ASSETS
What is a Trust?
Quite simply, a Trust is like a box that you can place your assets into, in order to protect your estate or your intended beneficiaries, from the threats of Probate costs, Accidental Disinheritance of your beneficiaries, Divorce, Bankruptcy, Remarriage or Inheritance Tax. Some Trusts form a part of a Will to be set up on death and others can be separate and set up during life.
Trust planning is a very specialised area of law and we have a team of professionals that are experts in this field. Be very careful to ensure that this is dealt with by a specialist. This is a significant area within Kenton Baker Estate Planning Practitioners as one of our main areas of expertise.
A Trust can:
- Prevent your direct bloodline (children and grandchildren) losing out in the event of your dying and your surviving partner remarrying. If you simply leave your estate to your partner and they remarry and subsequently die, it is common for the estate your partner inherited from you to pass to the family of the new partner. This is called Accidental Disinheritance of your beneficiaries. A Trust can stop this from happening!
- Prevent an inheritance left to a child who is facing problems (divorce, bankruptcy, addictions) by distributing the funds to that child in such a way that it won’t be squandered or misused.
- Prevent the situation arising whereby a child with disabilities could lose benefits if they inherit from you through a Will. Inheriting via a Trust means that benefits are not affected.
- Enable assets that are held in a Trust to be distributed immediately – thereby removing the need, and the huge cost and time delays, of probate.
Trusts are far more than just a potentially tax-efficient way of protecting and gifting assets for the next generation. They provide welcome protection for young children or vulnerable beneficiaries. We can help you set up and manage effective trust planning, providing you with peace of mind.
Some Types of Trust: Click the links below to find out more
What are trustees?
Trustees are the people you appoint to look after your assets in the trust for the benefit of the beneficiaries, for example until a child is old enough to inherit. Usually, Executors and Trustees are the same people. Trustees can be other family members, friends or professionals.
For help or guidance in this sometimes complex matter