Trusts

A Trust can be a tax-efficient way of benefiting someone in the future.  For example, money passing to a relative on their eighteenth birthday; an allowance paid every month to a grandchild; a valuable possession held for safekeeping.

Trusts can be arranged to deal with a vast range of circumstances, but their success depends on careful preparation.

What is a Trust?

In simple terms, it’s a legal arrangement where you can give an asset (such as property, money, shares) to someone, known as the ‘trustee’, to look after for another person, known as the ‘beneficiary’.

The trustee technically owns the assets and is obliged to manage the trust for the beneficiary, who will then receive the asset at a given time.

Different Types of Trusts

It is essential to seek legal advice when setting up a trust, as there are several different types, and the best option will be one which is most tax efficient and fits the purpose.

There are myriad considerations when setting up a trust.  Most forms of trust are set up very easily, but some may be subject to legislation or allowance changes, or perhaps dependant on the structure of a Will.

Read more below and contact us for advice and to discuss the detail of your requirements.

The basic trusts:

Interest in Possession Trust

The beneficiary can receive an income from the asset but not the asset itself.

For example, a trust set up for a rented property with a partner as the beneficiary of the trust for their lifetime.  In this case the partner is the beneficiary and can receive the income from the property.  When they die the rented property will then pass to a specified recipient, such as their child.

A Bare Trust

This is a straightforward trust where everything is given to the beneficiary outright once they are over 18.

Mixed Trust

This is where some of the trust has specific provisions tailored to the requirements of the settlor (the person making the trust).

For example, part of the trust may be in the same terms as an Interest in Possession Trust, but some of the assets are treated under the rules of a different trust.

Discretionary Trust

This type of trust gives the power to the trustees to decide how the assets are distributed, and to make investment decisions within the trust.

Vulnerable Person's Trust

There are circumstances where a specific trust such as this may be of tax benefit, providing the beneficiary is a ‘vulnerable person’.

Services

Wills    

Costs

Transfer of assets into Trust in your lifetime for the ultimate benefit of a Third Party – from £4,000

Contact us for a cost estimate tailored to your specific needs.

Gail made the arrangement of our wills a painless and thought provoking exercise…our wishes have been understood and will be acted upon..

We will have no hesitation in recommending your services to other members of our family as well as our friends and business associates.

Steve and Rachel W

Are you prepared for all eventualities?

Sudden incapacitation, deteriorating illness or loss of ability to communicate means you may no longer be able to state your wishes at a time when you most want to be heard. Would it give you peace of mind to know that your affairs will be dealt with by someone you trust? With an LPA, you can rest assured that the person speaking for you is chosen and trusted by you.

Probate fees are set to rise

The Government has said that Probate Fees will increase in 2019. The fee accompanying a Probate application will be calculated on a sliding scale, likely to be around 0.5% of the value of the estate. This is a large increase on the current fee, which has not been well received in the private client sector.

Leave your money to children or charity?!

Sheila Hancock, actress, is adamant that her children can work for their own success. She’s made provision for her own long term care, so as not to burden her children, and intends to leave her money to charity. For advice about your own estate, contact us at Bicester Wills.

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