A will trust – also known as a testamentary trust – is created within your will to allow you to protect property you hope to pass on to your family. Trusts are legal entities that allow someone to benefit from an asset without being the legal owner. You create the trust and appoint a person to manage it – the ‘trustee’. The trustee manages the trust on behalf of the ‘beneficiaries’ – those who receive the income of the trust. Establishing trusts can give you an element of control over assets you wouldn’t have if you gave them away outright. There can also be tax advantages, but that should never be the main reason for setting one up. In some cases, you could end up paying more tax by putting assets into trust. Trusts can be complicated structures with tax implications, and you should seek legal advice before setting one up.
There are two main types of trust that you might choose to set up:
- a will trust, created upon your death,
- a lifetime trust, which you establish during your lifetime. We explain the pros and cons of both.
Interested in making a will? Get in touch today to find out more about Wills and Trusts and a specialist adviser from our team will contact you assist you further.