Some people still regard Trusts as the exclusive preserve of the wealthy. This is not the case. In simple terms, a Trust forms a protective wrapper or envelope around those assets placed into it by the person who creates it. A Trust is created when the Settlor gives assets such as property or money to the Trustees who hold the assets on behalf of the Beneficiaries.
Nowadays, Trusts are commonly used to protect your assets from possible claims and ensure the value of the assets can be preserved and passed on to your chosen beneficiary or beneficiaries. When drafted correctly, lifetime Trusts and Will Trusts can be very useful mechanisms to provide clients with peace of mind that they have done everything possible to protect the value of their assets and provide for their beneficiaries.
Broadly speaking, Trusts can be divided into two types, Lifetime Trusts and Will Trusts. As the name suggests, Lifetime Trusts are created during the lifetime of the Settlor (the person creating the Trust) and come into force as soon as the Trust is signed, dated and the chosen assets are transferred into it. A Will Trust is created in a persons Will and comes into force on his or her death.
A well drafted, professionally prepared Trust can have a range of advantages, which include:
- Mitigating/minimising potential Inheritance Tax liability.
- Reducing potential probate costs and fees.
- Avoiding/reducing “sideways disinheritance”.
- Avoiding/reducing some creditor claims.
- Avoiding/reducing claims made against your estate by disaffected relatives .
- Protecting a beneficiary's future inheritance from the effect of divorce or relationship breakdown.
- Protecting your beneficiary's future inheritance from the effect of their bankruptcy.
Our team of experienced private client solicitors have substantial experience in drafting both lifetime and Will Trusts on behalf of clients. We specialise in all forms of Estate Planning/Asset Protection Trusts, Discretionary Trusts and Will Trusts.
The law surrounding Trusts is complicated and getting sensible professional legal advice is essential if a Trust is to be properly prepared and put in place. We offer expert confidential advice on all forms of Trust work. Our Private Client team has amassed almost fifty years of experience in the field.
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Our solicitors will be pleased to help.
Geoff joined the firm in 2019 and has over 30 years experience in dealing with Private Client matters. Geoff specialises in Wills and Probate, Trusts/Asset Preservation and Powers of Attorney.
Fiona qualified in 2012 and joined the firm in 2021 after having previously worked for a number of years in legal advice clinics based at Northumbria University and the University of Sunderland. Fiona also lectures part time at the University of Essex online. She now specialises in Wills and Probate, Trusts/Asset Preservation, Powers of Attorney and NHS continuing healthcare advice.