A trust is an arrangement where you can transfer some of your assets to Trustees of your choice and may include you, who will hold it for the benefit of one or more persons. A trust can be created during your lifetime or in your Will.
There are many reasons why you may wish to set up a trust. For example you may want to provide for relatives who cannot legally deal with their own affairs such as children or someone who has lost mental capacity. You may have assets that you wish to retain control over but want to transfer the benefit to a relative or you may wish to defer a young adult’s inheritance.
Special rules apply for inheritance tax when you set up a trust. In most cases where the amount going into the trust exceeds the nil rate band, the excess is taxed at 20% and tax is also payable ten-yearly on the value of the trust assets above the nil rate band but at a maximum rate of 6%. Certain trusts are exempt from these rules.
Whatever your reason for creating a trust and whether it be during your lifetime or in your Will we can advise you of the different types of trusts available, which may be most suited to your circumstances and of course any tax consequences.
The Inheritance (Provision for Family and Dependants) Act 1975
Do you feel aggrieved to have been left out of a Will?
In some instances it is possible to apply to Court to obtain some benefit from the Estate. Perhaps you have received some benefit but do not feel that this is adequate?
We can advise you whether you are entitled to bring a claim; what you will be required to demonstrate to the Court and the factors which the Court will take into account in assessing whether any provision should be made for you.