Why should I set up a Trust?
Trusts can be a very effective method of safeguarding your assets and ensuring that the people and causes that you support can benefit from your help.
TP Legal offers expert advice in plain language to make sure that you are able to use all the possible benefits of using a trust.
Trusts can create a basis of estate planning often providing extremely tax-efficient means of safeguarding your assets from future expenses such as residential care home costs or Inheritance Tax.
There are several benefits of setting up a Trust, including:
What is a Trust?
A trust is an agreement where trustees hold assets for the benefit of one or more ‘beneficiaries’.
Different types of Trusts
There are several types of trusts but the most often used is the Discretionary Trust.
Succession Planning is where a trust is used to give shares in a family business or family company to children or other relatives. A trusts makes it possible to take use reliefs for “qualifying” business assets.
Estate and Tax Planning
Trusts can allow people who wish to pass assets down to younger relatives. A Trust allows the beneficiaries who are not yet ready to hold those assets in their own right to benefit from these assets. A trust allows an individual to provide for your children or grandchildren and start the procedure of making gifts out of your estate for inheritance tax purposes, but keep control as a trustee.
A By-Pass Trust allows a person to pass lump sum pension death benefits to relatives. This can reduce the Inheritance Tax charge whilst still allowing the spouse or other family members to benefit.
Personal Injury Trust
If compensation is awarded due to a personal injury, the person who received the compensation can put this money into a special Personal Injury Trust allowing means tested benefits to be preserved.
It is vital to think about the tax implications of your death may have, especially for your chosen beneficiaries. It is also vital to think about the best method of arranging how your assets pass down to your beneficiaries, so one or more of the following may apply:
Trust law is a complicated area of law and one in which you should always take specialist advice from one of our trust solicitors.
Does your existing trust need a review?
Many trusts were set up several years ago may no longer fulfil their original objectives.
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