A Trust Service Provider to Protect Your Estate Beneficiaries
Trusts to Safeguard Your Estate
A trust works to benefit and protect the beneficiaries of your estate. Leaving money to a spouse is a straightforward way to pass on your estate. If however, the spouse should remarry, your estate may then pass onto their new spouse’s family and not your own, if they passed away. A trust ensures that those members of your family you wish to provide for are not left empty handed due to extenuating circumstances.
A trust can also aid beneficiaries who are too young or incapable of handling the estate you leave behind. Furthermore, as a trust is held by a trustee and not the beneficiary, this estate is safe from taxation, debt collection and divorce; further safeguarding your estate from being used for the unwanted trivialities of life.
Three Key Parties In a Trust:
Settlor:
The individual who puts funds or assets into a trust.
Trustee:
The individual or individuals who look after the assets whilst the trust deed is in existence (can commonly be a settlor, family member, beneficiary or financial adviser).
Beneficiary:
The individual or individuals who ultimately benefit from the assets in the trust, and any interest gathered whilst assets are held by the trustees. A trust can have multiple beneficiaries, an individual beneficiary or flexible beneficiaries, which may necessitate a different form of trust. See below.
The Types of Trusts
(Two Common examples from a List of Many)
Interest-in-possession Trusts:
These trusts are also commonly referred to as ‘fixed interest’ or life interest’ trusts. These trusts are popular with people marrying for a second time as they allow money to be left to a spouse for their lifetime, whilst also separating and leaving money for the children of a first marriage. This ultimately protects against your children being left with nothing. Furthermore, interest-in-possession trusts allow for shares to be left and benefited from by beneficiaries, but not sold. This may be appropriate in the case of shares in a family business which you wish for your heirs to keep.
Discretionary Trusts:
This form of trust allows the trustees power to gift capital left in the estate to a stated class of beneficiaries. This flexibility works well for those unsure which of their beneficiaries may require help down the line; or even in circumstances where a grandparent may wish to leave money for grandchildren not yet born. This is entirely at the discretion of the trustee as no party has ‘interest-in-possession’ as in the aforementioned form of trust. Discretionary trusts offer estate holders the ability to put trust in their trustees to use the estate left behind appropriately and how they would wish.
Key Benefits of a Trust
Allows you to hold property, through Trustees, on the behalf and in the interest of your beneficiaries.
Can reduce inheritance tax as the estate is not yet tangible for the beneficiaries.
Protects your estate and the financial interests of your beneficiaries in the case of divorce or bankruptcy.
Allows assets to be managed and administered on behalf of an individual who may be incapable, e.g. minors or relatives without the mental capacity.
Choose Armada As Your Trust Service Provider In Manchester
Armada Wills provides an attentive, accommodating and legally staunch Trusts service. Ensuring your assets are protected and passed on to the correct people at the right time is of utmost importance. Armada Wills’ air-tight Trusts safeguard your estate and your beneficiaries against any extenuating and unforeseen circumstances that may arise.
Arrange Your Trust Today
Telephone: 07544 714 092
Email: info@armadawills.co.uk