What is a Will with Trust?

A Trust is a legal arrangement included as part of your Will. The Trust within the Will allows you to provide increased protection for your assets as well as your loved ones. Having a Trust in your Will is more common throughout England and Wales than people realise. Often it is not understood what it is, how it works and why it is actually needed.

Why do you need a Trust?

The most common reasons for setting up a Trust within your Will include:

Protecting your children’s inheritance from previous relationships
Protecting your children’s inheritance from future relationships
To look after vulnerable or disabled Beneficiaries
To ensure under 18 children are financially looked after
Protecting your Estate from third parties
To provide a home for your partner, without them passing it on to anyone else

So, how do Trust Wills work?

A basic Will allows you to gift your possessions, property, and cash, however when you gift these things the receiving Beneficiary can do what they like with it. This may leave it open to sideways disinheritance, losing some of the gift through divorce, bankruptcy and greedy third parties.

Creating a Trust within your Will ensures your assets are taken care of as you would like. As well as taking care of children and vulnerable loved ones that may not be able to take care of the Estate themselves.

A Will with Trust can hold your Estate on behalf of the Beneficiaries. You then choose people to look after the assets, known as Trustees. The Trustees are nominated within the Will to administer the Trust for you.

What does a Trustee do?

The Trustee(s) will look after and manage the Trust for however long the Trust lasts. This could be for a person’s lifetime, a set time frame or until a significant life event. A Trustee will have the same amount of control over the Estate as if they own it themselves. Importantly however, they cannot benefit from the Trust.

Trustees have a legal duty to the Beneficiaries and therefore must manage the Trust for the benefit of the Beneficiaries. This means that the Trustee must be acting in the best interests of the Beneficiaries at all times. It is advised to choose trustworthy, financially responsible Trustees with good administrative skills.

What types of Trust Wills can I have?

Property Trust

A property Trust Will allows you the ability to best protect the property for future generations. This type of Trust will ensure your share of the property is guaranteed to be received by your chosen Beneficiaries. Avoiding disinheritance through remarriage, change in wishes after you have passed away and care home fees for the surviving partner.

Life Interest Trust

A Life Interest Trust lets you to nominate a loved one to continue living in your property but not to financially benefit from the property. This Trust will allow you the peace of mind that you have looked after your loved ones without the chance of disinheriting other loved ones. Choosing a Life Interest Trust works well for partners that live in your home but do not own it. Allowing you to provide a home for loved ones that need someone to live until a particular age or life event.

Flexible Life Interest Trust

A Flexible Trust can provide a lifetime income for one Beneficiary, for example a partner, while retaining the capital for the benefit of other Beneficiaries, for example children. This Trust works well to protect the value of investments for future generations as well as financially taking care of loved ones.

Discretionary Trust

A Discretionary Trust Will allows you to appoint trustees to manage inheritance on behalf of vulnerable loved ones. In particular ones who require help with managing finances and children under 18 who cannot yet legally inherit. This type of Trust is ideal for children under 18 and loved ones in a vulnerable position, for example people with disabilities, Beneficiaries going through divorce or having financial struggles.

Writing a Will is the best thing you can do for your family and loved ones. Creating a Trust within your Will allows you to protect and provide for them in a more secure and assured way.

Investing in a Will with Trust is as little as £379 so contact us today to protect and provide for peace of mind.