Making a Will – Trust and Trustees

Making a Will – Trust and Trustees

Leaving property or money in a trust can protect that property and make sure that it is preserved and distributed according to your wishes.

The law surrounding trusts and appointing trustees can be complex – and it is necessary to take legal advice if you are considering setting up a trust.

Setting up trusts can mean, however, that probate is not required as the assets held in the trust will be managed by the trustees and will not be included in an estate.

Will Trust

A will trust can protect property and ensure that a surviving partner or spouse can remain in the marital home. This is also a way of ring fencing the value of the home in case the surviving partner needs to go into care, as half the property will be owned by the trust and cannot be assessed for the cost of care.

A will trust can also ensure that, if the surviving partner remarries, any children of the first marriage will still inherit under the will, even if the surviving parent disinherits them.

There are implications regarding inheritance tax and capital gains tax with will trusts and taking expert legal advice is vital.

Flexible Life Interest Trust

A Flexible Life Interest Trust (FLIT) is another way of preserving wealth and property for future generations of a family, as the trust is created once one partner dies, with their capital and assets held on trust to provide financial support to their surviving partner during their lifetime.

Any income the trust generates is not subject to inheritance tax – and the surviving partner can pass the trust on after their death to nominated beneficiaries, such as children.

Discretionary Trusts

Discretionary trusts offer flexibility when there may be more than one beneficiary who might occupy a property owned by the deceased.

When making a will, it is usual for a letter of wishes to be lodged with the trustees regarding the entitlement of beneficiaries under a will.

As with other types of trusts, there are different tax implications relating to discretionary trusts – as opposed to fixed interest trusts – and taking expert legal advice is crucial.

Appointing Trustees

When appointing a trustee it is important to remember to consider the following points:

• Trustees have a legal duty to hold property for the benefit of another – including holding property for children.
• Appointing a trustee/s who are able to carry out their duties and are honest and reliable is important. 
• It is possible to appoint one or more of the Executors of a will as a trustee – and also one or more guardians named in a will can also be named as a trustee.

Duncan Lewis Wills and Probate solicitors can advise on who to choose as a trustee – as well as offering legal advice on disputes between trustees, disputes between trustees and beneficiaries, and advising trustees on disputes between beneficiaries.

Duncan Lewis Wills and Probate Solicitors – Trusts and Trustees

Duncan Lewis Wills and Probate solicitors can advise on all matters relating to trusts and appointing trusts – including advising on disputes between beneficiaries under a trust and concerns about the management of a trust by trustees.

Duncan Lewis has extensive expertise in acting as professional trustees – and has in-house tax and financial planning experts and family lawyers able to assist in complex cases involving trusts and trustees.

Our specialist Wills and Probate solicitors offer focused and clear advice on inheritance tax and tax efficiencies when writing a will with a trust.

We offer competitively-priced fixed fees for wills and probate matters, whenever possible – with hourly rates for contentious probate matters.

For expert legal advice and guidance on wills, trusts and trustees, call Duncan Lewis Wills and Probate solicitors in confidence on 0333 772 0409.