What is a trust?
A trust is an arrangement where a person or a group of people are made responsible for money, investments or property (‘assets’) for the benefit of others.
Trusts can be set up in your will and are activated when you die.
Types of trusts
There are many different types of trusts. These are the most popular:
- Protective Property Trust
- Right to Occupy Trust
- Discretionary Trust for Children
- Disabled Person’s Trust
- Vulnerable Person’s Trust
- Nil Rate Band Trust
- Flexible Life Interest Trust
Why do I need a trust?
Trusts are set up for a number of reasons but mainly because they can protect and manage your home, money and other assets after you die for:
- Your children if your surviving spouse or civil partner needed to go into care.
- Your children if your surviving spouse or civil partner remarried or entered into a new civil partnership.
- Your children if you have children from a previous marriage or civil partnership.
- Your children when they are too young to look after their own money and care.
- Your disabled or vulnerable loved one who cannot manage his or her own affairs.
- Your loved one who is frivolous with money.
- Your loved one struggling with a drink, drug or gambling addiction.
- Your loved one who inherits less due to paying unnecessary inheritance tax.
- Your loved one who is going through bankruptcy or divorce proceedings.