Trust Wills

What is a Trust?

A trust is a legal agreement that allows a person, named a trustee, to hold assets on behalf of someone, or a group of people, after you pass away. These people are called beneficiaries.

The assets you can leave can be money, investments, life insurance, land, or property. You can name anyone you wish to be a beneficiary, and the most common examples are children, grandchildren, or charities. A Trust can be set up either whilst you are alive or when you have passed away.

What is a Trust Will?

A Trust Will is a hybrid document that combines elements of a Will and a Trust.

A Trust Will is a legal agreement written into your Will that sets up one or more Trusts to manage your assets after you pass away.

When you create a Trust Will, you name a trustee who will manage and distribute the assets according to the terms you’ve set. These terms can be very specific, allowing you to control when and how your beneficiaries receive their inheritance.

Examples of leaving assets in a Trust Will are:

• Leaving money for healthcare needs.
• Leaving money specifically for education.
• Leaving money or property for a specific milestone, such as a wedding.
• Leaving money for children or grandchildren and allowing them access to the money at a responsible age.
• Leaving assets as charitable donations.
• Leaving instructions for assets and any income to distributed to multiple individuals, such as a spouse and any children.
• Making sure property remains in the family, protecting a family’s heritage.

What Can a Trust Will Do?

Trust Wills can include specific instructions that protect assets from mismanagement and ensure they are used according to your wishes.

The common circumstances of a Trust Will are:

• You have a spouse or partner from a previous relationship.
• You wish to leave your estate to a vulnerable person.
• You wish to leave assets to children who can take ownership at a later stage of life, including people who are not born yet.
• You wish to protect assets from any care fees in the future.
• To reduce inheritance tax payments.
• To manage money from any compensation claims.

How Can a Trust Solicitor Help?

Our Trust Solicitors can help ensure that your Trust Will meets legal requirements and accurately reflects your wishes. Our Trust Solicitors can help you set up a Trust in a Will and advise you on the best Trust to set up based on your wishes and your circumstances.

Our Wills and Probate Solicitors will work closely with you and use their extensive experience of estate planning and administrating, to ensure your Trust Will fully protects you, your family and represents your wishes in full.

Contact us or call us on 0114 2743 481 to book your appointment today.

Types of trusts

Bare trust

This is the simplest Trust and gives all assets to the beneficiary as long as they’re 18 years old or over. Assets in a bare trust are held in the name of a trustee. However, the beneficiary has the right to the contents of the trust at any time if they’re 18 years old or over.

Interest in possession trust

The beneficiary can get income from the Trust straight away but cannot control the assets that provides the income.

Discretionary trust

The trustees have complete control over the assets and the income they generate, deciding how and when to give them to the beneficiaries.

Life Interest Trust

A life interest Trust allows a beneficiary, often a spouse, to benefit from the assets during their lifetime. After they pass away, the remaining assets are then distributed to other beneficiaries, such as children or grandchildren. This type of Trust is particularly useful for ensuring that your spouse is cared for while preserving the estate for future generations.

Property Trust

A property Trust is designed to protect your home or other real estate assets. It can be particularly useful in safeguarding your property from being sold to pay for long-term care costs. The trustee manages the property and ensures it is used according to your wishes, such as allowing a spouse to live in it for their lifetime.

The Role of a Trustee

The trustee plays a pivotal role in executing the Trust Will. This person, or entity, is responsible for managing the Trust’s assets, ensuring they are used in line with your instructions.

Choosing a reliable and competent trustee is crucial for the smooth administration of your estate. It’s recommended you get advice from a Trust Solicitor before agreeing to be a trustee.

Beneficiaries

You can choose anyone to be a beneficiary of a Trust, such as:

• A specific, named individual
• A class of people, such as ‘my grandchildren and their descendants’
• A charity or charities
• Any other body of people, such as a company or sports club

There might be more than one beneficiary, like a whole family or defined group of people.

Setting up a Trust

To set up a Trust, you need to include all the details about how the trust should be managed. Our Trust Solicitors can advise on all decisions made in your Trust, including who the trustees and beneficiaries should be, what assets should be left in the Trust, how the assets should be managed and how you want the assets to distributed.

Our Trust Solicitors

Our Trust Solicitors represent clients in:

• Sheffield
• Barnsley
• Rotherham

The team can meet with you personally in the comfort of our offices. If you are physically unable to attend any of our offices, a home visit can be arranged.

Contact us or call us on 0114 2743 481 to book your appointment today.