A Will Trust is an arrangement that comes into effect when you die and will provide your Trustees with control over your assets on behalf of the beneficiaries of your Estate.
Will Trusts can be tailored to meet your objectives for your Estate. Common reasons for Will Trusts may include:
A Trust allows for control over the assets you placed in it. A common example is when somebody marries for the second time but has children from their first marriage. These individuals face some difficult challenges as they wish to provide for their new spouse, perhaps for their remaining lifetime or a defined period, but they also wish to protect the interests of their own children. A Trust lets them do this.
Avoiding the time delays of Probate
When you die any Inheritance Tax that falls due and the costs involved with Probate must be paid before your assets are distributed by your Will to your beneficiaries. This can be quite a problem for the Executors of your Estate as they cannot access any of your assets until Probate has been granted and so they must find the money from elsewhere to pay for these costs and liabilities. A Trust is separate from your Estate and so your Trustees can immediately access any money held in it and use the money to pay the Inheritance Tax bill and Probate fees.
Saving Inheritance Tax
If you place assets into a Trust to which you cannot benefit, after seven years the assets will fall outside your Estate for Inheritance Tax purposes. A further benefit is that any growth on the assets held in the Trust will immediately be outside of your Estate minimising further any tax that would fall due.