Would a trust benefit you?

An Immediate Post Death Interest in Possession Trust will allow the first partner who dies share of property and / or money to be loaned to the surviving partner for the remainder of their life through the inclusion of a trust. When the surviving partner also dies or possibly remarries, the loaned assets are repaid into the trust fund and then gifted to the first to dies beneficiaries. This form of trust allows the first to die more control over who ultimately receives their estate whilst also not depriving a spouse or partner of a home or cash assets during their lifetime.A Discretionary Trust may be an appropriate inclusion in your Will if your beneficiaries are going through a period of misfortune, such as bankruptcy, divorce or poor state of mind or are in receipt of means tested benefits. The discretionary trust will enable the inheritance to be managed by trustees on behalf of these beneficiaries.

Cohabiting partners can not benefit from the transfer of assets available to a married couple or civil partners. However by including a Discretionary Trust with Charge provision within their Wills, both co-habiting partners can utilise fully the inheritance tax allowance available to them and possibly minimise (or eliminate) inheritance tax due on their estates.

Sally Bakkes of Christie Munro can advise whether a trust may benefit you.