A trust is an obligation imposed on Trustees to hold and deal with certain property in particular ways (specified in the trust deed) for the benefit of specified Beneficiaries. The Trust fund may comprise money, insurance policies, shares or a property.
The creation of a trust is not only a flexible and secure method of making gifts, it can also be used as part of a lifetime Tax planning regime to reduce the overall effects of Inheritance Tax payable on death. They can be used to:
- Protect your assets
- Protect against Care Fees
- Guarantee income for your family
- Help reduce your IHT liability
- Prevent beneficiaries benefiting when they are too young
- Prevent “spendthrift” beneficiaries from benefiting all at once
- Protect your assets from DWP and benefits assessments
The process involved in Trust creation and the ongoing administration of them is quite complex. We would advise that you seek advice from our Private Client Team who will be able to provide you with the options available to you.
Contact us for an informal discussion to find out if a Trust can help you plan your families financial future