Trusts can be confusing, and with so many variations around it’s not easy to work out which you need, or whether you need one at all. The factor that differentiates trusts is the reason for them being set up in the first place. It is important to understand the purpose of a trust before it’s set up, and whether the agreement is what you need. At Turner Little, we can help you choose the right trust for your purposes. We’ve come up with reasons why you should think about setting up a trust:
- To manage your assets
Your beneficiaries may not be capable of managing the assets you give them, or perhaps won’t want to. This problem can be solved by having trustees in place to manage the assets for them. Common reasons for this kind of trust is when children are minors or have a disability. You can manage the assets when you’re alive, but after you die a trust can take over and carry on your wishes.
- To protect your assets
A trust is an effective way of protecting your assets from potential creditors, a marriage breakdown or from anyone who could influence your beneficiaries. You will need legal advice on this as there is legislation surrounding which assets you can transfer in specific circumstances.
- To control the distribution of your assets
You may not trust your beneficiaries to own the assets directly. This could be for many reasons, including that they are minors or are known to be poor at handling finances. With certain trusts you can distribute assets to your beneficiaries over a period of time.
- To keep personal details private
After you die, your will can become a public document. This would include the value of your estate and assets, and certain people could be allowed to access a copy of your will by law. By contrast, a trust is a private document and must be kept confidential.
- To avoid challenges to your wishes
While it’s possible for someone to challenge your will after you die, and for it to be changed (this is called ‘compulsory succession), a legally drafted trust is watertight and can mitigate challenges to your wishes.
- To cut Inheritance Tax (IHT)
If you put assets into a trust and they meet certain conditions, then they legally no longer belong to you. This means that after you die, their value generally won’t be included in your estate for IHT purposes. So, when property is held in trust, it is then outside your estate and will therefore cut your IHT.
About Turner Little
Founded in 1998 in Yorkshire, UK, Turner Little is a specialist UK and offshore company formation, banking and corporate services provider. Our services include company formation, UK and offshore banking, asset protection, credit correction/repair, trademarking and trusts. Other services include Internet services, mail forwarding, wills and probate. Turner Little’s vision is to offer the best possible service, together with market leading products.
For more information, please contact us on 01904 783101.