Trusts - Discretionary and Lifetime

Discretionary and Lifetime Trusts by Heritage Wills

Helping you protect and distribute your assets

Care for Your Children Long After Your Passing

All parents worry about their children continuously, and you might be starting to think about what will happen to them after you pass away. Depending on your situation, you may worry that your children won't have enough money or resources to take care of themselves when you're no longer here, especially if they're disabled. Fortunately, you can set up a trust that ensures the people you love the most will receive the care they need long after you're gone, and you can rest assured that our professionals will help you set up the most appropriate discretionary trust for your needs.
professional advisor explaining trust options

Valuable tools for Estate Planning

Establishing a Trust in your Will can be beneficial for lessening Inheritance Tax (IHT) and ensuring that children are not disinherited by changes to marital status, as well as helping to shelter assets from Local Authority calls for care fee payments later in life (see also our Property Protection Trust).
Trusts can be written to come into force immediately, or can be effected upon your death if written into your Will.  They can vary from being a simple clause in a Will that protects assets for a child until they reach a certain age, to a more complex Trust that cares for a disabled child who is unlikely to be able to manage their own affairs.
Below is a simplified explanation of two common Trust types – call us or book an appointment with one of our professionally trained advisors for a more detailed explanation that reflects your own circumstances.

Lifetime Interest Trusts

Just like the Property Protection Trust (PPT)  a Lifetime Interest Trust from Heritage (sometimes also called a Family Asset Protection Trust), effectively gives over ownership of specific assets to a Trust that you control and benefit from while you are alive (so you could receive interest and dividend payments for example, and buy or sell assets themselves).
If you die first, your partner could continue to benefit from the assets - in exactly the same way that they could continue to live in the family home under a PPT.  Upon their death, the Trust and its contents pass down to your chosen beneficiaries as you have stipulated.
Protect Your Family and Assests | Heritage Wills
40%
The standard inheritance tax rate for any assets above the IHT limit – including your property
young professional setting up a discretionary trust

Discretionary Trusts

Particularly helpful for unmarried couples who cannot benefit from any unused inheritance tax allowance upon the first partner’s death, a Discretionary Trust sees assets - including property – transferred and managed by trustees (who usually include any surviving spouse and other beneficiary) who decide how those assets are to be used and distributed.
Despite needing to pay inheritance tax on the first partner’s half of the estate, thousands of pounds can still be saved perfectly legally in this way, as both partners’ IHT allowances are maximised for the benefit of their chosen beneficiaries.
A Discretionary Trust is also a fantastic tool for avoiding sideways disinheritance and for providing for people with disabilities.

Let Our Professionals Help You Create a Lifetime Interest Trust

As detailed above, we have a range of lifetime trusts available, and we know that choosing the right one can be complicated. However, understanding the differences between the trusts is crucial because you need to know that your assets will be managed according to your wishes after you pass away. Fortunately, you don't have to set up a lifetime trust alone because we can lend a helping hand.

Our highly trained, compassionate and experienced professionals will guide you the process of choosing and setting up a trust, and they'll take the time to ensure you understand the different choices available. We'll make sure you're satisfied with the terms before finalising the paperwork, and you can count on us to keep you up to date on any law changes that might affect you. If you want to create a family asset protection trust with confidence, then we're the company to call.

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Call us and Learn More about Discretionary Trusts

If you want to remain in control of your assets and ensure the people you love the most inherit what is rightfully theirs when you pass away, we encourage you to find out more about lifetime interest trusts. Contact us on 01603 894500 if you have any questions about our services or want to take the first step towards setting up a trust that can benefit the remainder of your life and your beneficiaries after your passing. 

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