It is important for you to have a Will in place before you die. Not having a Will can lead to numerous complications when dividing an estate and, for some families, it can be enough to tear them apart.
But it isn't just Wills that need to be considered.
Trusts can be used as a way of passing on inheritance, under the protection of Trustees who will pass on assets to your chosen beneficiaries in accordance with the Trust.
The benefits of doing this is that you can ensure your assets are going exactly where you wish.
So, in what circumstances are trusts useful?
Blended Families
If there are children involved from previous relationships, a couple may want to ensure that such children benefit from their inheritance.
A Trust could be included to enable assets to pass to a surviving partner upon the deaths of the first to die. The trust can also further outline what happens to the assets when both have died.
In this case, assets could be split between the couple’s own children.
Remarriage
If your spouse dies, you may go on to remarry in later life.
This could mean that a Will written when both were alive to be altered, sometimes in a way that may remove inheritance from existing children.
As with the above, a Trust could be included in a couple’s Wills to ensure inheritance for the ultimate beneficiaries whilst enabling the surviving spouse to have use of the asset during their lifetime, such as with the family home.
Is the beneficiary able to manage the inheritance?
A Trust is the most common way of safeguarding assets for those unable to manage their own finances, for example, a disabled person or someone with a substance misuse or alcohol dependency problem.
Here, the Trustees would use the assets to directly benefit the beneficiary, the Trustees would use their discretion as to how and when to release the funds.
If You're Unmarried
Unmarried couples do not have the same rights of inheritance as those who are married or in a civil partnership.
In marriage or civil partnerships your estate can pass directly to your spouse upon your death.
Trusts can be included to ensure that your partner is provided for, whilst also addressing the inheritance tax issues for unmarried couples.
The above are just four common reasons to include a trust in your Will, there are many other reasons and a variety of Trusts which may help individual clients.
For more information about Trusts, contact LCS on 0345 017 8250 before it's too late.
