A trust can be an effective way of protecting assets when those assets are placed in a trust by the person who creates it. This person is known as the settlor. A trust can hold most assets such as cash, investments and property and those assets would be managed by the trustees who would be the people of your choice. The trustees hold the assets on behalf of your beneficiaries.
One of the most common type of trusts are Will trusts which are written into a person’s will but come into effect on a person’s death. If a trust is established by a Will your entire estate or your share of the home may be placed into the trust. Another type of trust is a lifetime settlement trust which is created during a person’s lifetime by means of a trust deed. This type of trust gives you peace of mind that assets will pass to the people of your choice but enables you to keep control and benefit from them until you die.
Placing your home and/or other assets into trust while you are still alive can have advantages for you and all your family and there are various reasons why people ask for our advice:-
- Avoiding sideways disinheritance - you may have concerns about a spouse remarrying on your death and their new family inheriting your assets. You may want to provide for your spouse but pass your assets onto your children
- Concerns about care home fees and minimising the liability
- Reducing potential Probate costs and fees
- Reducing the chance of claims against your estate by relatives whom you have not made provision for in your Will
- Reduction of tax liabilities
- Holding property for children
At Bennett Richmond, our experienced solicitors can advise you in the setting up of a trust which would enable you to choose your Trustees while you are still alive and manage your family’s future