What is a Trust?
Put simply, a trust is a legal agreement that describes how assets can be passed from your ownership (gifted) to be held for the benefit of another person (beneficiary). Therefore a trust can effectively allow you give away your assets to whomever you choose whilst allowing you to stipulate how or when they will benefit.
Why Use Trusts in estate Planning?
The many types of available trust can help you:
Reduce your inheritance tax liability
Preserve assets for children from a previous marriage.
Protect a spouse's financial future by providing lifetime income
Pass assets to grandchildren where your children are already wealthy in their own right.
Prevent children from inheriting assets before reaching adult age, such as 18 or 21.
Make gifts to charities.
Trust planning is a specialised area of financial planning and it is important to get advice from experienced and qualified advisers. Contact us to see how trust planning might benefit your estate planning requirements.