Trusts
What is a Trust?
A Trust is a powerful tool for protecting your assets from potential creditors or divorce claims.
It’s also a key strategy in estate planning, helping to reduce tax liabilities and, in some cases, eliminate Inheritance Tax.
Trusts can be set up during your lifetime or through your Will upon death. They allow you to pass wealth to chosen beneficiaries, providing control and protection over family assets.
Why use a Trust in addition to a Will?
Creating a Will gives you peace of mind, ensuring that your loved ones receive exactly what you intend, with minimal delays and deductions after you pass. However, a Will alone doesn’t address many potential "what ifs" that could prevent your wishes from being honoured or lead to your heirs losing their inheritance.
A Will doesn’t eliminate the delays and costs associated with Probate, prevent generational Inheritance Tax, or relieve beneficiaries from paying Inheritance Tax before receiving their inheritance.
Using a Trust alongside your Will offers numerous benefits, addressing these concerns and providing added protection.
These benefits fall into six key categories that a simple Will alone cannot provide.
Benefits:
- Prevent sideways disinheritance.
- Minimise the adverse effects of inheritance.
- Ensure your loved ones inherit at the right time.
- Safeguard your legacy against challenges.
- Avoid the costs and delays of Probate.
- Reduce the burden of Inheritance Tax.
For a detailed assessment of your tax liability and trust options, contact us for a personalised discussion with one of our advisors.
A trust can be created in various circumstances, such as:
- When someone is too young to manage their affairs.
- When someone is incapacitated and unable to manage their own affairs.
- To protect assets for your children from a future spouse.
- To pass on money or property while you’re still alive.