What is a Trust?
A Trust is a legal structure that holds and protects assets for beneficiaries. It allows you to control how and when your assets are distributed, rather than them passing directly under your Will.
The Risk Without a Trust
- Inheritance Tax (IHT) → Without planning, your estate could be hit with a 40% tax bill on assets over £325,000.
- Marriage & Divorce Risks → If your spouse remarries, their new partner may inherit everything, leaving your children with nothing.
- Creditors & Bankruptcy → If a beneficiary is in debt or declared bankrupt, their inheritance could be seized by creditors.
- Care Home Fees → Your home and savings could be used to pay for care costs, leaving nothing for your family.
How a Trust Protects You
✅ Reduces or eliminates inheritance tax
✅ Prevents disinheritance from Divorce & Re-marriages.
✅ Shields assets from creditors & bankruptcy
✅ Protects your home from being used to pay care fees
✅ Ensures assets go to the right people at the right time