Creating a Trust can be a useful part of estate planning. Creating a trust can enable you to gift money or property but in such a way that you retain control of what happens to it.
The effects of creating a trust can be to:
- Protect assets from unnecessary tax
- Control the way that beneficiaries can use and benefit from the assets in trust
- Protect the assets from being assessed in the event of a beneficiary divorcing or going bankrupt
- Ensure that blended families all benefit in a fair way
Trusts can be created in lifetime and / or via a Will on death.
Tax can be avoided if you survive 7 years or more after making a gift into a trust.
Trusts are managed by Trustees chosen by you. You may decide to be a trustee yourself. We can either advise family trustees or we can act as a trustee alongside family members. This can be a good idea so that we can be the ‘bad guy’ and diffuse any potentially difficult family dynamics!