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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