Benefits of Trusts in Estate Planning

1. Benefits of Trusts in Estate Planning The best definition of estate planning is planning for the transfer of assets to the next generation(s) in the most tax-efficient way while taking into account the legal obligations to dependents. Both lifetime donations and an inheritance transferring under a will should take into account trusts. How do trusts function? A trust is an official agreement created to manage property on someone else's behalf. The settler is the person who transfers ownership of the asset. The trustee is the person who legally owns the asset but does not own a beneficial interest in it. Beneficiaries are the individuals that the settler wants to benefit from the assets. The title is held by the trustees for the benefit of the named beneficiaries. They are not allowed to benefit from their position as trustees in any way. IWC Probate And Will Services Suite 43-45 Airport House, Purley Way, Croydon, Surrey CR0 0XZ Phone: 020 8150 2010 admin@iwcprobateservices.co.uk https://www.iwcprobateservices.co.uk/

2. Once a trust is created, the settlor typically loses all rights to the assets, unless they still possess the revocation power. Inheritance tax planning trusts are established when the property is held by trustees on trust with the intent to distribute income or capital for the benefit of specified beneficiaries in the manner that the trustees, in their sole discretion, think suitable. The beneficiaries can only ask to be taken into consideration; they cannot insist that distributions be made in their favour. Due to tax and legal considerations, the beneficiaries have no interest in the fund. Through an unenforceable letter of desires, the settlor may give the trustees instructions on how to manage the trust fund. Transfer your assets carefully Many people wish to retain some sort of control while transferring their assets. They might want to make sure that their money stays in the family, or they might have a specific goal in mind, like paying for school costs or a down payment on a house. We could provide you options to make sure your money goes to the people you want it to and is used for the things you want it to. IWC Probate And Will Services Suite 43-45 Airport House, Purley Way, Croydon, Surrey CR0 0XZ Phone: 020 8150 2010 admin@iwcprobateservices.co.uk https://www.iwcprobateservices.co.uk/