Trusts can be used in many ways to protect your assets—for vulnerable people, inheritance tax planning, and multiple generation planning. You can set up the trust now or via your Will, giving you ‘control beyond the grave.’ Assets passing into the trust can include money, property, or investments. These assets are managed by trustees, appointed by you, according to your trust deed or Will. You name the beneficiaries and specify how and when they can benefit. The trustees have a legal duty to act in the best interests of the beneficiaries but can use their judgement to decide whether or not to advance funds at any given time.
Assets in the trust benefit from spousal exemption for IHT purposes, so there is no limit to the amount that can be included. Provides full flexibility allowing your spouse or partner access to the assets without owning them. The trust provides protection against their re-marriage, divorce, money problems or amendments to their Will. Protects children from previous relationships as they can be named as the long-term beneficiaries. When your spouse dies this becomes a discretionary trust, so advice should be taken regarding the tax position as this will depend on the value held in the trust.
You may be concerned about a beneficiary who is going through divorce, has alcohol or drug issues, or simply is not good at managing money. A Discretionary Trust provides flexibility, allowing assets to be used in the best interests of the beneficiaries at the time. The Trust can hold all your assets or a share of your estate. You provide a letter of wishes explaining to your trustees how you would like the funds to be utilised. It can also be useful for inheritance tax planning.
A Life Interest Trust is useful where you want to preserve assets (usually property) for you chosen beneficiaries, but provide for a spouse, partner or other person during their lifetime. The life tenant remains in the property for the rest of their life, but on their death the assets pass to your chosen beneficiaries
The value held in the fund is capped at the inheritance tax nil-rate threshold. This is very useful in reducing the IHT liability for unmarried couples. Otherwise, assets passed to the surviving partner could be taxed again on the second death. Additionally, it can be used to claim unused tax-free allowances from previous marriages if the partner has died. The main beneficiary has use of the income and capital during their lifetime, but the assets are repaid upon their death.
Only available for beneficiaries who are registered disabled or are unable to manage their affairs due to mental or physical disability. A tax efficient way of managing funds without affecting means tested benefits. The trust funds can be used to pay for any additional needs (not day to day spending) of the beneficiary, eg holidays, hobbies, home improvements or alterations, additional support. When the main beneficiary dies the fund passes to the reserve beneficiaries.
Only available for beneficiaries who are registered disabled or are unable to manage their affairs due to mental or physical disability. A tax efficient way of managing funds without affecting means tested benefits. The trust funds can be used to pay for any additional needs (not day to day spending) of the beneficiary, eg holidays, hobbies, home improvements or alterations, additional support. When the main beneficiary dies the fund passes to the reserve beneficiaries.
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The guidance and/or information contained within this website is subject to the regulatory regime of England and Wales and is therefore targeted at consumers based in the England and Wales only.
Customer service email address: admin@lamond-wills.co.uk.
Return policy: You have a right to cancel any agreement within 14 days by emailing the company using our customer service email address above.
© 2024 Lamond Wills Ltd Registered in England & Wales, No. 12618945.
Registered Office: 85 Great Portland Street, First Floor, London, England, W1W 7LT.
The guidance and/or information contained within this website is subject to the regulatory regime of England and Wales and is therefore targeted at consumers based in the England and Wales only.
Customer service email address: admin@lamond-wills.co.uk.
Return policy: You have a right to cancel any agreement within 14 days by emailing the company using our customer service email address above.
© 2024 Lamond Wills Ltd Registered in England & Wales, No. 12618945.
Registered Office: 85 Great Portland Street, First Floor, London, England, W1W 7LT.
