All Your Will Trust Questions Answered.
Is this different to a Will?
Yes. Although a Will trust does have many of the features of a Will, but some additional features too.
What is a Will Trust?
There are different kinds of Will Trust that we deal with:
Property Will Trust:
The main purpose of a property will trust (aside from the standard provisions of a Will) is to protect your home.
Rather than leaving your home to your partner, you each leave your share to a trust, and give your partner the right to live in your share after your death.
In the way, if a local authority make an assessment on your estate for residential care purposes, they cannot assess the proportion that your partner left on trust as your asset.
Also, when the spouse that survives later dies, the part of the property in trust is passed on as they wanted, rather than the surviving spouses.
Life Interest Trust:
Similar to the above, except as well as your share of the home, you put the rest of your estate in to trust too - all of your cash and other assets. You nominate someone as the 'Life Tenant', this could be your spouse, and they can benefit from what you leave in the Trust - from living in the house to spending income on cash and investments etcetera.
These are often used when couples re-marry but want to provide for children of their first marriage.
This type of trust prevents what is often known as 'sideways-disinheritance' - without this, your estate could pass to your new spouse, not your children.
Disabled Persons Trust
There can be benefits to leaving assets to those with a disability through a Trust. It may help by not interfering with their benefits, or by allowing a Trustee to be appointed to manage money where that can not be done by the beneficiary personally.
18 - 25 Trust
This trust is suitable for leaving gifts to beneficiaries under the age of 25. It can allow for you to plan for your minor children or grandchildren while specifying the age they are to inherit.
The trust allows for the income and capital that the trust would produce to be used for the beneficiaries benefit before they reach the specified age to inherit, allowing for full flexibility if required.
Without an express trust in place for these beneficiaries you could leave your executors and residual beneficiaries with a serious inheritance tax problem. If you are looking to leave gifts to minors in your Will it is important it is drafted with clarity and certainty. Your Town & Country Law Legal Consultant can advise you on all aspects of preparing your Will and any Will Trusts you may need.