Trusts: Protecting Your Legacy
At My Family Legacy Midsomer Norton, we believe in leaving nothing to chance when planning your future. That’s why we strongly recommend considering the use of trusts to safeguard any money and assets featured in your will.
Understanding Trusts
A trust serves as a second layer of protection after your will. It ensures that the intentions outlined in your will are accurately directed to the correct individuals. Additionally, a trust securely “stores” a significant portion of your assets, ensuring that the maximum possible amount is made available to those mentioned in your will.
When beneficiaries receive assets through a will, they can sometimes be subject to Inheritance Tax, with the average tax on received assets being 40%. We believe there’s a better way.
We can design a trust to protect as much of the contents of your will as possible. Importantly, the trust only becomes active upon your passing. This means your money is not tied up but has a designated “home” and is securely safeguarded, akin to being kept under virtual “lock and key.”
Setting Up a Trust
Establishing a trust can be seamlessly integrated into the process of creating your will. My Family Legacy will guide you through this process as you discuss your assets, finances, and beneficiaries outlined in your will.
To get started, consider:
Listing your assets and finances (you may have already done this for your will).
Identifying your key beneficiaries and how you wish to allocate these assets.
Appointing two trustees (and a reserve trustee, if desired) who will act on your behalf upon your passing.
My Family Legacy will provide expert consultation on all necessary paperwork to ensure you are well-prepared to establish a well-thought-out trust. If any issues or opportunities arise during this process, we have trusted partners, including independent financial advisors, who can offer their support to ensure you have everything you need.
Is a Trust Necessary?
While the simple answer is “no,” an increasing number of individuals are choosing to direct their assets into trusts upon their passing. This practice ensures that only nominated beneficiaries and their direct descendants receive the assets, often referred to as “Bloodline Planning.” A trust not only maximises the utilisation of your assets but also provides safeguards in specific, challenging circumstances.
In today’s complex world, remarriage is more common than ever before. This can bring financial complexities, such as children potentially missing out on inheritance if a parent’s new spouse outlives them. Without careful planning, this could jeopardise the intended beneficiaries of your will. However, by establishing a trust in your will, you can ensure that only your nominated beneficiaries will ever receive the assets.
If you are concerned about what would happen to your assets if a family member experienced a divorce, a trust can be put in place to ringfence the beneficiary, protecting their inheritance.
Contact Us Today
Don’t leave your family’s future to chance. Secure it today with estate planning and will writing services at My Family Legacy Midsomer Norton. To learn more or schedule a consultation, please contact us by calling 0117 279 5507 or simply add your details to the form below and a member of the team will be touch.
You have choices when it comes to planning your legacy. Let My Family Legacy support you in making the right decisions to safeguard your assets, provide for your loved ones, and secure your family’s financial future.
Address:
1 Sentinel Close,
Midsomer Norton,
Radstock BA3 2WB
Phone:
0117 279 5507
Email:
support@myfamilylegacy.co.uk