As our population increases in age, so too do the risks of dementia and the ability to correctly judge your own needs on occasions.
Trusts are a great way of managing your assets and can be created in a Will or put in operation during your lifetime as it is a fiduciary arrangement that allows a third party, or trustees, to hold assets on behalf of a beneficiary or beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries.
There are different purposes for setting up a Trust; you may wish to ensure that a disabled relative can benefit from funds in your lifetime or after death. You may also wish to provide for a person without the risk of their state benefits being affected.
Trusts set-up can be complex or simple; nevertheless, we can provide advice tailored to your needs.
Since trusts usually avoid Probate, your beneficiaries may gain access to these assets more quickly than they might to assets that are transferred using a Will. Additionally, if it is an irrevocable trust, it may not be considered part of the taxable estate, so fewer taxes may be due upon your death.
Assets in a trust may also be able to pass outside of probate, saving time, court fees, and potentially reducing Estate taxes as well.
If you have created Discretionary Trust in a previous Will to protect your main home, due to legislative changes coming into effect in April 2017, such Discretionary Trust may not be necessary.
Get in touch with us to check the terms of your Will.