What is a Trust?
A trust is a mechanism to remove assets, such as your property, from your estate and put aside for a beneficiary. This enables safeguards the wealth you have accumulated, protecting the assets placed in the trust from any third parties. Trusts can be used to protect your property from being used to pay for long term care. Trusts can also ensure your assets are not seized if you are made bankrupt, and in the event of matrimonial issues, your assets are still passed on and retained by your beneficiaries. Trusts ensure that you are able to give your hard earned estate to those who you wish to benefit.
Can I reduce my tax bill with Trusts?
Trusts have been instrumental in mitigating tax since Medieval times. Trusts were first created for the aristocracy and wealthy landowners to avoid paying taxes to the Crown.
Why should I use a trust when setting up a will?
Trusts can be used to help set up a will in the following reasons:
- Minimising inheritance tax by reducing the value of your estate
- Protecting assets, ensuring they cannot be used to pay for care home costs or other unforeseeable expenses
- Providing a guaranteed income for exactly who you want to go (children, other siblings etc).