Trusts

Trusts are becoming more popular

Trusts

We can include a Flexible Life Interest Trust within your Will, which although has certain comparisons with the Nil Rate Band Trust, it has a discretionary trust built in to ensure that the surviving spouse has access to the estate without having to bow to the discretion of trustees.

There are many other trusts available and it is always advisable to discuss this in more detail with one of our experienced consultants who can appraise you of the position and how best to meet your individual and personal needs. Trusts can be used to cover residential homes and second and subsequent properties with great ways to reduce your exposure to IHT.

There are many TYPES OF trusts available

By being aware of the options you can start the process of estate planning and mitigating the potential costs, for example reducing the impact of Inheritance Tax.

Deed of Trust

This acts in a similar way to a Deed of Gift, but is used where it is not possible to transfer the asset at this time, perhaps because there is a mortgage on it in sole name that prevents the transfer taking place, then a Deed of Trust is arranged that confirms that the ‘Deed ‘ is agreed but that it will take place at a later date but prior to death.

Flexible Life Interest Trust

Most couples, whether married, in a civil partnership or co-habiting often have very simple Wills. These simple Wills often provide for the entire estate to pass to each other on the first death and on the second death to pass to children or other persons. If only if life was so simple!

Our clients want to protect their assets which they have worked hard to accumulate over the years and ensure that they reach their intended beneficiaries. Their concerns may be that the survivor might remarry, so that assets do not pass to their children or may relate to Inheritance Tax or future care costs.

A Flexible Life Interest Will may offer the protection you require.

Property Trusts

These can be used to cover your main principle property as well as additional properties that you may own.

With all our Trusts, where registration is required we take great care in ensuring that all the relevant Land Registry forms are completed and submitted correctly. If conveyancing is required at the same time due to transfer of ownership then we work closely with a qualified conveyancer to arrange this.

In the past it was believed that it is the date of intent that determines the date a trust is established not the date the last trustee signs. You should always ensure that the trust is signed as soon as is possible to avoid any doubts in your intentions. Once a document has been signed it is the last signature that effects the date of the trust and registration at Land Registry can subsequently take place.

A trust is set up to protect your assets and is basically a ‘wrapper’ which can shelter your assets from inheritance tax liability and local authorities but extreme care must be taken to ensure a trust is arranged for the ‘right reasons’.

Asset Protection Trust

There are many benefits from setting up a Family Asset Trust or Asset Protection Plan which can also help illustrate that the trust was not set up for deliberate deprivation purposes:

Inheritance Tax Mitigation
Assets held in a trust are not part of your estate when you pass away and may be excluded from inheritance tax (IHT) calculations, depending on how the trust is set up and individual circumstances.

Prevent Claims on Your Estate
An asset protection trust allows you to exclude individuals, such as estranged relatives, from your estate. Unlike a Will, a trust cannot be contested, avoiding court costs and lengthy legal battles.

Protect Against Sideways Disinheritance
With an asset protection trust, you can ensure only your chosen beneficiaries inherit your assets. This prevents in-law children from benefiting if your children marry and later divorce.

Avoid Probate Fees and Delays
Assets in a trust bypass probate, reducing delays and legal fees. Beneficiaries can receive their inheritance quickly. However, setting up a trust involves complex forms, and executors may face additional costs when arranging probate.

Safeguard Assets from Bankruptcy
If you’re self-employed or own a business, placing personal assets in a trust can protect them from creditors in case of financial difficulties or bankruptcy.

Protect Assets During Divorce
By placing assets in a trust before cohabiting with a new partner, you can shield them from potential claims in the event of a divorce. This is especially useful for widows or widowers wanting to secure their estate for their children.

Avoid Selling Your Home for Care Fees
Placing your home and assets in a trust can protect them from being used to pay for care home fees. Since the trust owns the assets, the local authority may struggle to force their sale.

To avoid challenges from the local authority, the trust must be set up while you are in good health and financially stable. If done properly, it is difficult for the government to claim deliberate deprivation of assets.

Probate, Conveyancing and Trusts is regulated by the SRA only for those that are individually regulated with the SRA and we refer work of this type only to SRA regulated people within this organisation to cover this work.

EXPERTS IN OUR FIELD

WHY CHOOSE US FOR Trusts

Find the right solution to achieve what you want for those you leave behind.

Colin helped me and my partner to make a long overdue will. It was a little complicated as we are not married, but have children and shared assets. Colin took the time to explain all the detail to us so we fully understood everything he went through. We now have the piece of mind that our wishes will be met if anything happens to us. I wouldn't hesitate in recommending Colin.

David

Cheam

Colin from CJH came to my house to discuss our will. He took his time and explained the process and its complexities in simple terms, in a way that I could understand. He raised numerous issues that I had never thought of. It has been a real pleasure working with him on this, and I would not hesitate to use CJH again, or to recommend them to others.

Nick

Epsom

Professional and friendly, highly recommend using Colin.

Ferdi

Ewell

Colin came to my house to meet my wife and myself. He was polite and professional, explained the complexities of the process in terms that I can understand. I will be meeting him in 12 months to review. Would not hesitate to recommend, or to use again.

Sam

Kingswood