Many clients believe that Trusts are only for the wealthy or those with complex circumstances.
However, Trusts can be extremely useful in many other instances and they are often essential in protecting your estate for future generations after your death.
Our Approach to Trusts and Estate Planning
Why Should I make a Trust?
Trusts are primarily established to protect your estate and for future generations. Have you already provided for your children and would now like to benefit your grandchildren? Are you concerned about your spouse remarrying after your death? What if they die without a Will and most of your estate passes to their new spouse? This does happen.
Other reasons include:
- To protect family assets, such as property, from the divorce or bankruptcy of your children or grandchildren;
- For family succession, i.e. if bypassing your adult children to ensure the estate is used for the education or benefit of your grandchildren;
- When someone is too young to manage their affairs;
- When a relative is disable or incapable of managing their affairs;
- Protection the means-tested benefit of a loved one, who may otherwise inherit a lump sum from your estate;
- Protection your estate from care home fees;
- Flexibility – the circumstances of your beneficiaries might change in the future, by setting up a trust you can ring-fence your assets and appoint Trustees to manage those assets and appoint funds out to individuals after your death.
Trust Registration Service - Statutory Change
Deadline 1 September 2022
If you are a trustee of a trust, even if it was set up many years ago, or an executor of an estate that is holding a property share or investments as a trustee (commonly for a minor beneficiary to turn of age), it is necessary for you to consider your reporting obligations for registration before the deadline on 1st September 2022.
The Trust Registration Service has been extended to cover most express trusts. This means that trusts either established in lifetime by the client (settlor), or by a Will on death will now require registration by the 1st September 2022.
More importantly to note is if the trust was in existence on 6th October 2020 but has subsequently dissolved, you are still required to register using the service and then close down the record.
For any ‘new’ trusts set up after 4th June 2022, the trustees must register the same within 90 days of execution. Similarly if there have been any changes to a trust the trustee must register the change within 90 days.
The responsibility for registration lies with the trustees. If you believe you may have created a trust in the past or if you believe you are a trustee of a trust, it is essential that check your obligations in light of the change.