What is a Will Trust
Will Trusts are established by a Will when the person who made the Will dies. Will Trusts give the legal title of property described in the Will to named people, known as Trustees,
to look after for the benefit of the beneficiaries named in the Will.
Trustees hold the legal ownership of assets placed in a trust for the benefit of others. The beneficiaries are the named people or group of people who benefit from the trust.
Types of Will Trust
Will Trusts can take many forms. Their usefulness is the flexibility they give to the person making the Will. Discretionary Will Trusts give trustees powers to decide who receives benefits from the trust fund and when. Using a Bare Trust can ensure that beneficiaries will receive their benefits if certain conditions are fulfilled. These conditions, known as contingency conditions, can be very simply reaching a specific age. These are just two types of trusts available to testators.
Situations where Will Trusts can protect your Assets
Using a trust to protect your assets against costs such as care fees for elderly relatives. This a good example of the use of Will Trusts as such costs are steadily rising and can easily reduce an inheritance to almost nothing in a very short space of time.
A carefully worded Interest in Possession Trust will leave a partner with the right to live in a property. The trust ends when the partner leaves the property or dies. The property will then pass to the remaining beneficiaries named in the Will.
A family’s circumstances may change. If, for example, there is a divorce or death, then an existing Will may not provide complete protection for the inheritance of the children . By placing property in a trust you can ensure that your children and their children will keep the inheritance for their use only.
Use the Contact Gerry option to find out more.