What is a will trust?
A will trust is a special setup within your will that allows you to manage and protect assets for your beneficiaries according to your wishes. It involves appointing trustees responsible for handling these assets for the benefit of others, usually after you’ve passed away.
What are the different types of will trusts?
- There are several types of will trusts, each tailored for different needs:
- Bare Trusts – Ideal for holding assets until beneficiaries come of age.
- Fixed-Interest Trusts – Allows you to set an age beyond 18 for beneficiaries to inherit.
- Life-Interest Trusts – Provides for a spouse or partner during their lifetime before passing the remainder to other beneficiaries.
- Discretionary Trusts – Gives trustees the flexibility to distribute assets based on the beneficiaries’ changing needs.
- Flexible Life-Interest Trusts – Similar to life-interest trusts, they are more flexible for trustees to access capital.
- Protective Trusts – Designed to safeguard assets from claims like creditors or in divorce proceedings.
Why should I set up a will trust?
Setting up a will trust offers many benefits, including:
- Protection – Keeps your assets safe from external claims.
- Tax benefits – Can reduce inheritance tax liabilities.
- Control -Specifies how and when your assets are distributed, maintaining influence over their use after your death.
- Support for vulnerable beneficiaries – Helps those who cannot manage money directly.
- Preservation of benefits – Ensures that a beneficiary’s government benefits are not jeopardised.
