As you might imagine, there are a number of different types of trust to cater for different situations.
Some of the most common types of trust are:
Bereaved Young Persons Trust
This allows you to include restrictions on what age your beneficiaries can inherit (up to age 26).
It also allows you to appoint trustees to manage the funds up until that point along with your own guidance / wishes on how the money is to be managed.
This is a long-term trust (lasting upto 125yrs) and allows you to pass money and assets to your chosen beneficiaries without the asset entering their own estate. This is especially helpful to protect inheritance from loss through divorce or debt.
Disabled Persons Trust
This is a trust used to protect the beneficiary from means-tested benefits (such as disability or care benefits), that they may lose after your death, should they inherit from you.
Life Cover Trust
This trust helps to protect your life cover from adding to your estate value when you die. It leaves your life insurance policy directly to your chosen beneficiaries tax free, rather than adding to the value of your estate, which is then assessed for inheritance tax. Meaning in many cases 40% of the life cover pay out is lose in tax.
Business Property Relief Trust
As you may expect, the purpose of this trust is to protect business assets that you leave to a beneficiary.
The purpose is to prevent the business from entering into your beneficiaries estate, and so adding to their tax liability and/or preventing them from passing the asset onto other members of their family.
It is not uncommon to use multiple trusts as part of your estate planning, and indeed far more complex trusts than detailed above. Many people are unaware of the options available to them, and the amount of control and protection they can give to the assets they leave behind.
At Haven Wills & Estates Ltd we passionately believe that the short amount of time it takes to create a safe and secure Will is time well spent.