law for life
What Is a Trust?
A trust is a legal arrangement where a person transfers assets to other people to manage for the benefit of others. Trusts can be used during your lifetime or set up in your Will to take effect on death. They allow you to retain a degree of control over when and how assets are distributed, which is often not possible with outright gifts.
Depending on the type of trust, trustees may have discretion over how funds are distributed, or the trust may impose more rigid instructions. The structure can be tailored to suit a wide range of family, financial, and tax planning needs.
Trusts and Inheritance Tax
Trusts can be powerful tools in reducing inheritance tax liabilities, particularly in cases where asset values are expected to grow faster than future increases in the nil-rate band.
They can be used to benefit grandchildren directly, potentially bypassing your children’s estates and reducing tax exposure over successive generations. Trusts also provide a structured way to pass on life insurance proceeds or business assets while retaining some control and tax advantages.
Couples who have previously been widowed may, through the use of trusts, make use of additional nil-rate bands that would otherwise be lost. Existing discretionary trusts in Wills should be reviewed carefully, as they may still offer asset protection or tax flexibility, even if your circumstances have changed.
Trusts
How Franklins Solicitors can Assist
Trusts are highly regulated and must be properly established and administered. If a trust is not set up or managed correctly, it can be challenged, potentially defeating its purpose and causing unnecessary stress for your loved ones.
At Franklins Solicitors, we offer specialist advice on all aspects of trust planning, including:
