Trusts often carry the misconception that they are exclusively for the rich.
However, this simply isn't true. In this article, we explore what a Trust is, who is it for and the key benefits…
What is a Trust?
A trust is a legal instruction that allows you to transfer your money and assets in an efficient manner, both in terms of tax and time.
What are they used for?
Typically, trusts are used to gift shares, cash, land, and property.
They can also be used to gift life insurance policies and their proceeds to designated beneficiaries. By doing so, the proceeds from the policy are excluded from your estate, leading to two significant benefits: avoiding probate delays and potentially bypassing inheritance tax.
For a deeper understanding, download our free guide on placing a life insurance policy in trust from our website.
A trust ensures that your assets are distributed to the right people at the right time. But remember, - given the complexity of trust laws, it’s highly recommended to seek professional advice.
What are the five key benefits of Trusts?
1) Avoid Probate Delays
Trusts allow for quicker distribution of assets, preventing lengthy legal processes and ensuring that your beneficiaries receive their inheritance without unnecessary delays.
2) Tax Efficiency
One of the advantages of trusts is their ability to minimise tax liabilities. By placing your assets in a trust, you can effectively bypass inheritance tax, ensuring that a larger portion of your wealth is passed on to your beneficiaries rather than being consumed by taxes.
3) Control Over Assets
Trusts give you the power to dictate how and when your assets are distributed. Whether you want to provide for a loved one’s education, support a family member with specific needs, or manage the inheritance until beneficiaries reach a certain age, trusts offer flexibility and control.
4) Protection for Beneficiaries
Trusts provide a safeguard for your beneficiaries, especially if they are young, financially inexperienced, or vulnerable. By managing the distribution of assets, trusts ensure that your wealth is used responsibly and for the intended purposes.
5) Privacy and Confidentiality
Unlike Wills, which become public record once they go through probate, trusts remain private. This means that the details of your estate and the distribution of your assets are kept confidential, providing an additional layer of privacy for your beneficiaries.
Summary
Our goal is to help you ensure that your money and assets are passed on to your loved ones in a timely and tax-efficient manner.
With the guidance of a financial adviser, you can be confident that your assets are managed and distributed according to your wishes, providing peace of mind that your loved ones are well taken care of.
Contact us today to learn more about how trusts can benefit you and your loved ones.
Get in touch with us today here or book directly onto my calendar here.
The Financial Conduct Authority does not regulate Wills, Trusts, Estate Planning, Lasting Powers of Attorney and Inheritance Tax Planning.
Willow Tree Financial Services are a Financial Adviser based in Polegate, East Sussex, UK. We specialise in Financial Planning, Mortgages, Investments & Pension Planning, Protection & Insurance Wills, Trusts & Estate Planning.
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