A trust is like an invisible barrier you can wrap around something. For example, children inherit your estate at 18 years of age if you were to die before then. Can you imagine an 18 year old with say £100,000 ! They probably wouldn’t use the money wisely for their future and may blow it all or a large chunk of it. A Children’s Trust can put a barrier around that age and you can state that they inherit at 21 years of age (for example). Trusts can also be used to avoid Inheritance Tax, make sure your children still gain access to your belongings and can even block the local authority from taking your home from the dreaded care home costs.
Here at David Nicholls, we can arrange this for you, contact us now for a free quote.
A discretionary trust gives power to the designated trustees so that they can give different amount of money to a beneficiary when they need it or can wrap a barrier around a home so that it doesn’t form part of the state. This can avoid certain percentages of Inheritance Tax or can block future spouses or partners from gaining complete control over the previous children involved.