Trusts Articles

I was talking with friends and the conversation came around to asking about trusts. So, even though this is oversimplified, I explained it like this.

Bereaved minors' and bereaved young person’s trusts are both very common. A will making a gift to children on the condition that they reach a certain age (depending on the age) will either create a bereaved minor’s trust or a bereaved young person’s trust (otherwise known as an 18-25 trust).

Discover how a Discretionary Trust can protect your loved ones from financial risks and safeguard assets while offering flexibility and potential inheritance tax advantages.

Vulnerable Person Trust (VPT) ensure that those we leave behind who are unable to care for themselves are cared for by the finances in our estate.

NRBDTs are simply discretionary trusts that take assets up to the value of the Nil Rate Band (NRB). The assets held in the trust are seen as owned by the trust and not by the trust’s beneficiaries and, therefore, are not part of the beneficiaries’ taxable estates.

Couples usually buy a property together as joint tenants, which means they both own the entire property, and the ownership automatically transfers to the surviving owner in case of one owner's death. If you want to gift your share of the home in your Will, you must change the ownership to tenants in common

Including a right-to-occupy trust in your will, you specify that you give someone the right to live in one of your properties. You can specify if this arrangement is for a set time, such as 3 years or for the rest of the person’s life.

Property Life Interest Trust (PLIT) aka (PPT) are among the most common trusts. They are typically used by couples to ensure that a share of the home will ultimately pass to children while still protecting the surviving spouse's interests.

Complex families often come with complex requirements to meet their long-term goals, and matters can be made more difficult when each testator has separate goals or concerns in mind. These goals usually revolve around the inheritance the children are to ultimately receive and when they receive it, and in certain cases, if they inherit at all. Using a Life Interest of the Residuary Estate can cater for most family needs for a number of reasons;

Useful for a person wishing to grant their surviving spouse the right to reside in their marital home until their passing while ensuring their children or grandchildren inherit their portion of the estate.

We should always consider Pets (the furry, scaly, feathered type). You may be pleased to know you can make provisions for them in your Will. Pets can be included in your will through an animal-purpose trust, which ensures their care and upkeep.

Business property relief can significantly reduce or eliminate inheritance tax on business assets. Many UK businesses could be eligible for up to 100% relief. However, this complex area of estate planning often necessitates additional professional advice.