Using your Will to set up a trust allows you to set out exactly who you want to benefit from your assets and protect your money from being spent where you wouldn’t want.
When leaving money or property in a Will, there is sometimes a risk that it may not end up where you meant it to be.
For example, a jointly owned property left to your spouse may be at risk of being sold to pay for care home fees, or money may be left to someone who at present is not in a position to use it wisely.
Setting up a Will trust allows you to dictate in detail who gets what, and when.
Protecting your share of a house
You may well want your spouse or partner to be able to continue to live in your shared home for as long as they want, but if they simply inherit it, then should they need to move to a care home, the whole value of the house will count as their own. This would then be taken into account when assessing their entitlement to help with fees.
Your solicitor will be able to draw up a Will allowing you to leave your share of your home to your children or other beneficiaries, but with your spouse or partner still able to live there as long as they wish. This means that your share of the house will ultimately pass to your children or other beneficiaries.
Passing your home to your children
Similarly, if you’ve remarried during your life, you may want your new spouse to have the benefit of your shared home for the rest of their life, but after that you want it to pass to your children.
A trust in your Will can make this possible, preventing the possibility that your share in your home be left by your spouse to someone other than your children.
Leaving a gift in trust
Setting up a trust allows you to leave money to someone under 18, to a person who is not able to manage their own affairs or to a recipient of state benefits, which might be withdrawn if they were to inherit a large cash sum.
Trustees will be in charge of the money, giving it to the beneficiary in accordance with your wishes, for example for living expenses or continuing education.
Leaving a life interest in assets
You can set up a trust via your Will so that a person receives income from the assets in your estate, but when they die, the capital is passed to the beneficiary of your choice. This allows someone’s funds to live on but prevents them from leaving the main capital under the terms of their Will.
Ask one of our specialist team at legalmatters to help you draw up the Will that allows you to leave your assets exactly as you wish. Call us to discuss your Will on 01243 216900 or email us at firstname.lastname@example.org.