We help clients throughout England and Wales.
We advise on a variety of trusts that can be set up during your lifetime or in your Will. For example:
Life interest trusts
These can be included in your Will and give a lifetime interest in a particular asset to your choice of beneficiary. For example, you might leave a lifetime interest in your house to your adult child (including an interest in any rents, should they not want to actually occupy the house) with the remainder to charity. Where couples are concerned, this is a useful way of ensuring that the entire value of a person’s estate is not used on care fees. On the first death, the spouse is left a life interest in the Deceased’s share of the family home. If the survivor needs care, the Deceased’s share cannot be taken into account when performing a means test.
Probate trusts are popular vehicles that allow your beneficiaries to access your assets immediately without the need for probate. Probate trusts can be absolute or discretionary but in both cases as the settlor (the person making the trust) usually is also a beneficiary, the gift is classed as ‘with reservation of benefit’ and the value of the trust is still subject to inheritance tax on the person’s death. These type of trusts are useful where the estate is likely to fall within the person’s inheritance tax allowance. They can hold a variety of assets. They should not be confused with ‘Asset Protection Trusts’ which are set up with the purpose of sheltering assets from the Local Authority (i.e. ‘deprivation of assets’) and are not advised.