Trusts are an essential estate planning tool that can provide flexibility, protection, and peace of mind when planning for the future. When included in a will, trusts ensure that your assets are managed and distributed according to your wishes. However, the concept of trusts can be complex, and it is vital to seek expert legal advice to fully understand your options. To help you make informed decisions, here are ten crucial questions to ask your solicitor about trusts in wills.
Please click here to find out more about our Wills, Trusts and Lasting Power of Attorney Services.
Free Initial Telephone Discussion
For a free initial discussion on how we can help you deal with the legal implications of creating a Trust, get in touch with us today. We are also experienced in dealing with all aspects of Wills and Probate and we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
- What is a trust, and how does it work in a will?
Understanding the fundamentals of trusts is the first step. A trust is a legal arrangement where assets are held by trustees on behalf of beneficiaries. When included in a will, a trust only comes into effect upon your death. Your solicitor can explain the roles of the settlor (you), trustees, and beneficiaries, as well as the specific terms of the trust, to help you determine if this arrangement suits your estate planning needs.
- What types of trusts can I include in my will?
There are various types of trusts, each serving different purposes. Common examples include:
- Discretionary Trusts: Allow trustees to decide how and when to distribute assets among beneficiaries.
- Bare Trusts: Provide beneficiaries with an immediate and absolute right to the trust assets.
- Life Interest Trusts: Enable a beneficiary to benefit from the trust assets (e.g., live in a property) during their lifetime, with the assets passing to another beneficiary upon their death.
- Trusts for Vulnerable Beneficiaries: Designed to protect assets for beneficiaries with disabilities or other specific needs.
Discuss with your solicitor which type of trust aligns with your objectives.
- What are the benefits of including a trust in my will?
Trusts offer numerous benefits, such as:
- Protecting assets from creditors or divorcing spouses.
- Ensuring that assets are preserved for future generations.
- Providing for vulnerable or minor beneficiaries.
- Managing inheritance tax liabilities effectively.
Your solicitor can explain how these advantages apply to your particular circumstances.
- How do I choose the right trustees?
Selecting trustworthy and capable individuals or institutions to act as trustees is critical. Trustees are responsible for managing the trust, making investment decisions, and distributing assets. Ask your solicitor about the qualities to look for in a trustee, the roles and responsibilities involved, and whether professional trustees may be a suitable option.
- What are the tax implications of setting up a trust in my will?
Trusts can have significant tax consequences, including inheritance tax (IHT), income tax, and capital gains tax. For example, discretionary trusts are subject to specific tax rules, including periodic and exit charges. Your solicitor can help you understand these implications and explore strategies to minimise tax liabilities while ensuring compliance with legal requirements.
- How does a trust protect minor or vulnerable beneficiaries?
One of the key advantages of trusts is their ability to safeguard the interests of beneficiaries who may be minors, lack financial experience, or have disabilities. Trusts allow assets to be managed responsibly on their behalf, ensuring that funds are used for their benefit without compromising their eligibility for means-tested benefits. Your solicitor can advise on the best type of trust for these purposes.
- Can I include conditions or restrictions in the trust?
You may wish to include specific conditions or restrictions in your trust, such as:
- Limiting access to funds until beneficiaries reach a certain age.
- Requiring funds to be used for particular purposes (e.g., education or housing).
- Allowing trustees discretion over distributions based on beneficiaries’ needs.
Discuss with your solicitor how to draft these provisions in a way that is legally enforceable and aligned with your intentions.
- What happens if circumstances change after my death?
Life is unpredictable, and it is essential to consider how your trust will adapt to unforeseen changes. For instance:
- What if a beneficiary’s circumstances change significantly?
- What if trustees are unable or unwilling to act?
Ask your solicitor how to draft a trust deed that provides sufficient flexibility for trustees to adapt to new situations while adhering to your overall wishes.
- How will the trust be administered, and what are the costs involved?
Trust administration involves ongoing responsibilities, such as managing investments, filing tax returns, and maintaining accurate records. Your solicitor can explain the administrative requirements and associated costs, including trustee fees and professional advice. Understanding these aspects will help you plan accordingly and ensure that the trust remains effective and manageable.
- How do I ensure my wishes are carried out effectively?
Clear communication and precise drafting are essential to ensuring that your wishes are respected. Your solicitor can provide guidance on:
- Drafting a comprehensive will and trust deed.
- Appointing reliable trustees and providing them with clear instructions.
- Reviewing your will and trust periodically to ensure they remain aligned with your circumstances and current law.
Conclusion
Including a trust in your will is a powerful way to secure your legacy, protect your loved ones, and achieve your estate planning goals. However, creating and managing trusts requires careful planning and expert advice. By asking these ten questions, you can gain a deeper understanding of how trusts work and make informed decisions tailored to your unique circumstances.
At Blackstone Solicitors, we specialise in wills, trusts, and estate planning, offering personalised advice to clients across England and Wales. Whether you are exploring the possibility of setting up a trust or need assistance with your existing arrangements, our experienced team is here to guide you through every step of the process.
How we can help
We have a proven track-record of helping clients create Trusts. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Wills and Probate Solicitors
It is important for you to be well informed about the issues and possible implications of creating a Trust. However, expert legal support is crucial in terms of ensuring your wishes are met as you would want them to be.
To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
Comments are closed.
