Parents of young children, grandparents, or anyone who is planning on leaving something to children as beneficiaries of their Estate may not want those children to have access to their inheritance as soon as they turn 18. Instead, they may prefer to choose an age anywhere up to 25 years old, when the beneficiary is more likely to be mature enough and ready to responsibly manage their inheritance. Please contact us for a quote if you would like to include a Trust in your Will.

A ‘Protective Property Trust’ (PPT) is a Trust within the Will which is set up on first death. With this Trust in place, the surviving owner of the property (normally the spouse or partner) will be legally entitled to use 100% of the property for the rest of their life. This is called a lifetime interest. The surviving party will either have the right to live in the property or the right to 100% of the rental income received for the property until the life interest ceases or they pass away. Please contact us for a quote if you would like to include a Trust in your Will.

A ‘Half Protective Property Trust’ (HPPT) is a Trust within a Will set up on death. This is recommended when a residential property is owned solely but occupied by an additional person, for example a spouse/partner, family member or close friend. With this Trust in place, the person occupying the property will be legally entitled to use 100% of the property after the testator’s death. This is called a lifetime interest. The surviving party will either have the right to live in the property until the life interest ceases or they pass away. The property is then left to a final beneficiary. Please contact us for a quote if you would like to include a Trust in your Will.

A ‘Life Interest Trust’ (LIT) is a Trust within the Will which is set up on first death. They are particularly popular because they are very flexible compared with alternative options. With this Trust in place, the ‘Primary Beneficiaries’ of the Trust (normally the spouse or partner) will be legally entitled to use 100% of the Trust for the rest of their life. This is called a lifetime interest. The ‘Secondary Beneficiaries’ (for example the children) will have a lifetime interest in the Trust, this will come into effect once the ‘Primary Beneficiaries’ have passed away or their lifetime interest has ceased. The ‘Default Beneficiaries’ (for example the grandchildren) will receive the remainder of the Trust in equal or specified shares.

A ‘Discretionary Trust’ within the Will, which is set upon the death of the testator, allows their Estate to be held in Trust for a specified period and facilitates the procedure of leaving a specific gift or amounts of money to a beneficiary, whilst giving the ability to attach certain conditions to the bequest. This Trust can be particularly useful when a beneficiary may:

• be disabled
• have additional needs or require care i.e. residential care
• have addictions i.e. alcohol, drugs or gambling

This Trust can give peace of mind that the Estate will be used for the benefit of the beneficiaries as only the trustees can distribute the funds in accordance with the stipulations outlined by the testator/testatrix.

The Nil Rate Band (NRB), which is currently the first £325,000 for individuals or £650,000 for couples, is placed into trust on the first death; this can include property and cash up to the limit. The remaining spouse can then have a life interest in the assets that are under trust as well as borrow money from the trust, which would be a debt to their Estate and could also reduce the IHT upon second death. This is a good option for those who have assets that are likely to exceed the NRB limit. It can also ensure that your beneficiaries (e.g. children and grandchildren) are always in the best financial and legal position. It allows flexibility in the trustees changing the beneficiaries over time and can be a good way to avoid inheritance tax for future generations.