Discretionary Trust

Will Trusts: Do More With Your Will

“Greater protection for your loved ones, better peace of mind for you”

With a Will Trust you can provide greater protection for your loved ones and have control over the exactly how your estate is to be distributed, to whom and when.

Property Protection Trust

Over 20,000 pensioners ever year are being forced to sell their homes and deprive their children of their inheritance by Local Authorities to pay care home fees.

A Property Protection Trust written into your Will can help safeguard your property for your spouse and your children.

There are two further situations for which a Property Protection Trust may be considered:

To provide for your surviving spouse while ensuring that your children are

Furthermore, the disabled person will not lose any of the social security local authority benefits for which they are eligible and the Trust receives favourable tax treatment.

Discretionary Trust

A Discretionary Trust is a powerful and flexible way to cater for a wide range of circumstances both foreseen and unforeseen.

The trustees own the trust’s assets on behalf of one or more beneficiaries. The beneficiaries, such as grandchildren, need not even be born until after your death.

The trustees can pay out income or capital to any one or more of the beneficiaries entirely at their own discretion but none of the beneficiaries has a right to receive anything.

Here are some examples of the use of a Discretionary Trust:

to provide for a financially irresponsible beneficiary; to provide for a beneficiary who is bankrupt or in danger of becoming bankrupt when the gift could be paid directly to your beneficiary’s creditors; to provide for a beneficiary who is separated but not divorced to avoid assets passing to the former

Since the transferable nil rate band was introduced for married couples and civil partners in 2007, it is now most commonly used in Wills for cohabiting partners with combined estates of over £325,000.

How cohabiting partners can save up to £130,000 Inheritance Tax

Two Year Discretionary Trust

None of us can foretell what the future may bring neither for our own family’s circumstances nor what the taxman may wish to inflict upon us. The Two Year Discretionary Trust provides maximum flexibility and enables you to minimise Inheritance Tax (IHT) without resorting to risky schemes.

Your residual estate is placed in trust and your trustees have up to two years in which to distribute your estate among the discretionary beneficiaries you list. This can include setting up further trusts. This means that your trustees will be able to minimise liability to whatever tax legislation is in operation on the date of your death.

Unmarried partners can maximise not only the use of both IHT thresholds, but can also minimise IHT on the remainder of their respective