Property Protective Trust
Quite often couples opt for a Property Protective Trust so that 50% of the family home drops into a trust but the surviving spouse or partner has a life interest in the property but the children’s inheritance is also protected from either sideways dis-inheritance or from care home fees.
Another great use of a trust is to protect vulnerable beneficiaries from losing their state benefits if they were to inherit a large sum of cash.
The trustees can then manage the money on their behalf providing income as and when required.
If you have married children, then leaving assets to them via a will trust could afford them the protection of losing those assets to a future divorce.
Trust Help & Advice
You can write a Letter of Wishes to give the trustees direction on what you want to make sure happens and how you would like to distribute any capital or income from the trust.
A Discretionary Trust can also be set up in your lifetime to enable you to pass assets to children or grandchildren yet retain control over the funds you gift. Settlor excluded trusts can be used as a great tool for inheritance tax reduction.
With so many different types of trusts in existence, it can be difficult to decide if a trust is the best option for you and your family, or more importantly, which type would work for you and your requirements.