Making a Will by signing with a pen

Will Trusts: Do More With Your Will

“Greater protection for your loved ones, better peace of mind for you”

With a Will Trust you can provide greater protection for your loved ones and have control over the exactly how your estate is to be distributed, to whom and when.

Property Protection Trust

Over 20,000 pensioners ever year are being forced to sell their homes and deprive their children of their inheritance by Local Authorities to pay care home fees.

A Property Protection Trust written into your Will can help safeguard your property for your spouse and your children.

There are two further situations for which a Property Protection Trust may be considered:

  1. To provide for your surviving spouse while ensuring that your children are your ultimate beneficiaries if your spouse remarries;
  2. To ensure that your children from a previous relationship benefit while providing for your current partner and any children of that relationship.
In these circumstances your spouse or partner can be given a life interest allowing them to live in the house until they die at which time the assets pass to your children.

How the Property Protection Trust works

Disabled Person’s Trust

The Disabled Person’s Trust ensures that beneficiaries with learning or physical disabilities receive their share of an inheritance while protecting them from unscrupulous exploitation.

Furthermore, the disabled person will not lose any of the social security local authority benefits for which they are eligible and the Trust receives favourable tax treatment.

Discretionary Trust

A Discretionary Trust is a powerful and flexible way to cater for a wide range of circumstances both foreseen and unforeseen.

The trustees own the trust’s assets on behalf of one or more beneficiaries. The beneficiaries, such as grandchildren, need not even be born until after your death.

The trustees can pay out income or capital to any one or more of the beneficiaries entirely at their own discretion but none of the beneficiaries has a right to receive anything.

Here are some examples of the use of a Discretionary Trust:

  • to provide for a financially irresponsible beneficiary;
  • to provide for a beneficiary who is bankrupt or in danger of becoming bankrupt when the gift could be paid directly to your beneficiary’s creditors;
  • to provide for a beneficiary who is separated but not divorced to avoid assets passing to the former spouse;
  • to set up a fund to benefit your children and/or grandchildren according to their future needs;

Nil Rate Band Discretionary Trust

A Nil Rate Band (NRB) Discretionary trust is a special form of Discretionary Trust used primarily for Inheritance Tax (IHT) savings. Since the transferable nil rate band was introduced for married couples and civil partners in 2007, it is now most commonly used in Wills for cohabiting partners with combined estates of over £325,000.

How cohabiting partners can save up to £130,000 Inheritance Tax

Two Year Discretionary Trust

None of us can foretell what the future may bring neither for our own family’s circumstances nor what the taxman may wish to inflict upon us. The Two Year Discretionary Trust provides maximum flexibility and enables you to minimise Inheritance Tax (IHT) without resorting to risky schemes.

Your residual estate is placed in trust and your trustees have up to two years in which to distribute your estate among the discretionary beneficiaries you list. This can include setting up further trusts. This means that your trustees will be able to minimise liability to whatever tax legislation is in operation on the date of your death.

Unmarried partners can maximise not only the use of both IHT thresholds, but can also minimise IHT on the remainder of their respective estates.

This trust is also useful if you cannot decide to whom to leave your estate or in what proportions perhaps being mindful of changing family circumstances.

Lifetime Interest Trust

This trust allows you to provide a beneficiary with an income for life or the right to reside in a property for their lifetime. Following their death, the assets pass to the beneficiaries you name.

An example of this trust would be where you own a property in which your mother resides and you wish to ensure that she can remain living there for her lifetime but ultimately want your children to benefit.

Another example would be where you want to leave a sum of money to your children but wish your spouse to receive an income from the capital while they are alive.

This trust can be used in a second marriage to benefit the children from a previous relationship.



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