It may not be a topic you want to think about too much, but making sure the people in your life are cared for after you die is important. Setting up a trust fund for younger or vulnerable family members is a great way to see that they are taken care of when you can’t anymore.
A trust fund is a legally binding agreement to leave a certain amount of money, property or investments to someone, except they must meet certain stipulations as outlined in your will before they can have it. Mostly this is related to age, so a parent can leave money to their children in a trust fund, to be accessed when the children are 18 or 21 for example.
The trustee is the person or authority to whom the responsibility of looking after the inheritance is given. This may be a relative, bank or another trusted person/organisation.
The beneficiary is the person who will eventually inherit the assets when they come of age or complete the contingency given in the deceased’s will.
A trust fund can help your beneficiaries to cut back on the inheritance tax paid as any money placed in a trust fund account won’t be counted in your estate after you die, but you’ll need a knowledgeable solicitor to help you with this to ensure you get everything right, otherwise the difference could be thousands.
The HM Revenue & Customs website gives even more information about the different types of trust fund.
You can choose to set up a trust fund right now, or you can put the details in your will. Either way, we can help. You just need to know who, what and when:
setting up a trust needs to be considered careful as there may be tax implications and there are on-going costs as the Trustees are under a duty to manage the trust fund, deal with any payments of tax, legal or investment costs and payments out.
Once you have decided these things, give us a call on 0207 406 5875 and we’ll talk you through the whole process of setting up a trust fund and ensure that your family is taken care of, and that too much tax is the least of their worries.
Ellie is a resident writer for Best Value Probate, covering topics such as Probate, wills and other legal proceedings.