You may find yourself in a position whereby you wish to utilise your assets for the benefit of other people, but would rather not make absolute gifts to them.
Instead, creating a Trust during your lifetime can be a very effective way of setting aside assets for the benefit of others, whilst also ensuring that you (or other selected persons) retain the overall control of those assets going forward.
Trusts can therefore be utilised as a way to protect the value of your assets in the event that your chosen beneficiaries were to be in receipt of means tested benefits, face subsequent divorce/bankruptcy petitions, pass away (for their own Inheritance Tax purposes) or require residential care. Placing an asset into a Trust, rather than gifting your asset directly to your beneficiary, can also ensure that your asset is not simply squandered or used by your beneficiary in ways that you would not have approved of.
Trusts are one of the most valuable financial planning tools, but they are also one of the least-well understood. There are many different types of Trusts available, each with their own purposes and taxation implications.
As you’d expect, deciding on the right kind of trust for your particular situation and understanding the implications for all parties involved all makes for a detailed and demanding legal task. However. our experts here at Paul Robinson Solicitors are perfectly placed to provide the best possible advice and solution based on your ultimate goals.