Why should I set up a Trust?
Several reasons for creating this kind of arrangement, including:
Wealth Management and Protection
when assets are put into Trusts, you no longer own them. Therefore, provided you set them up correctly, those assets will be protected from creditors. You can also use Trusts to protect property and/or assets from becoming part of the financial settlement upon divorce. However, using a Trust for this purpose requires expert legal advice because the Courts can claw-back assets from a Trust if the other spouse successfully argues assets were put into trust specifically to prevent them from becoming part of a financial settlement.
Avoiding care home fees
because it is the Trustees who control the Trust capital, those funds are not considered when assessing the family member’s available assets.
To provide for vulnerable family members
people often create Trusts to ensure family members with physical or mental disabilities are provided for in the future. Because a Trustee manages the property/assets, the Settlor can be confident the assets/income will be distributed in a way they believe protects the Beneficiary’s best interests. A trust can even be created to provide for your own needs in the event that you become incapable in some way.
To protect assets when someone is too young to handle their own finances
To preserve family assets for future generations
To pay for the education of future generations
Trusts can be established to direct income for private schooling and/or university fees of grandchildren or great-grandchildren.
Tax planning
Trusts can be used as a vehicle to manage how much inheritance tax is paid on your Estate, maximising the amount of your hard earned cash available to your remaining family. Using a Trust for this purpose requires expert legal advice, which we will provide quickly and in a practical manner.