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An Introduction to Will Trusts

There are several different types of Trust which can be included in a Will to protect assets from falling out of your estate after your death or to ensure a loved one is properly provided for. 


This series of articles is intended only as a guide as to the different types of Will Trust and should not be construed as an all-encompassing document to be relied upon without seeking full legal and financial advice to see if such a Will trust is right for you and your family circumstances. 


In brief, the most frequently used types of Will Trust are: 


  • Life Interest Trusts  

  • Discretionary Trusts 

  • Vulnerable (Disabled) Persons Trusts 


Over the next few weeks, we will be looking at each of the Will Trusts listed above in more detail. 


Setting up a trust as part of your Will is relatively straightforward but there are many things to consider, not least the duties and responsibilities of the trustees:- 


DUTIES  


  • To act in accordance with the trust document and the general law 

  • Duty of care to the beneficiaries 

  • To take reasonable care in making investments 

  • Not to profit from the trust 

  • To protect trust assets 

  • To keep accounts 

  • To act unanimously 

 

RESPONSIBILITIES

 

  • To Register the Trust with the Trust Registration Service (where applicable) 

  • To declare and pay any tax due on trust assets, this includes income tax, capital gains tax and inheritance tax 

  • All of the trustees are jointly liable for any tax due 

  • Trustees must notify HMRC of any changes  

  • Keep records of the trust’s income and expenses 

  • Complete and return any tax return issued 

  • Supply trust income form to beneficiaries if applicable 

 

The idea of including any type of trust in your Will may seem daunting or complicated but they can sometimes offer the most protection for your estate and/or beneficiaries and in the most tax-efficient way. 


If you wish to discuss the possibility of including a trust in your Will then please call our Wills team for a free ½ hour consultation, we will be happy to advise you.  Don’t forget to read our upcoming articles on the specific types of Will Trust that may be of interest to you. 

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