Will Trusts

When someone writes their Will, they usually leave their assets to family members, friends or charity. However, if you want to protect your assets for the future, a Will trust could be the answer.

A Will Trust is a legal arrangement that allows you to leave your assets in a Trust for the benefit of your chosen beneficiaries whilst retaining control of the assets during your lifetime. This can provide you with peace of mind, knowing that your assets will be protected and managed in the way that you choose for the benefit of your chosen beneficiaries.

Will Trusts can be set up for a variety of reasons, including tax planning or protecting the assets of beneficiaries who may not be able to manage them themselves, or to support children or loved ones who have chronic illnesses or disabilities.

How does a Will Trust work?

When you die, your assets are transferred to the Trust and managed by the appointed trustees. The trustees hold the assets in the trust for the benefit of the beneficiaries and distribute the assets according to the terms of the Trust. 

A Lifetime Trust (inter vivos trust) is set up during your lifetime and is usually funded with cash or property. 

A Testamentary Trust is created in your will and is funded with assets from your estate after you die.

In both cases, the trustees will be responsible for managing the assets in accordance with the wishes specified in the trust and relevant law.

Who can benefit from a Will Trust?

Will Trusts can be beneficial for a range of people. This includes those with:

• Children or family members who are not able to manage their own finances

• Beneficiaries with mental or physical disabilities

• Beneficiaries who are minors

• Beneficiaries who may struggle with debt or financial management

Will trusts can also be beneficial for those who want to protect their assets from tax or other financial claims, such as from creditors or divorce settlements.

What are the benefits of a will trust?

The benefits of a Will Trust include:

• Protecting assets for the future

• Tax planning

• Greater control over how the assets are distributed

• Ensuring that beneficiaries receive the maximum benefit from your estate

• Avoiding disputes between family members

Will Trusts can provide peace of mind that your assets will be managed in the way that you want them to be and that your beneficiaries will be financially protected. However, it is essential to get advice before setting up a Will Trust to ensure it is the right decision for your circumstances.