When you first start looking into wills and estates, you will likely come across ‘trusts’ as an option for you to consider. But what are trusts, and what exactly do they do?
In addition to a will, a trust is a legally binding arrangement where you decide what happens to your money. You will appoint a trustee, who acts on your behalf when you can no longer oversee your affairs.
A trust can protect the people you love even before you pass away! Some trusts can protect money for your children, living rights for your partner, and even who gets to look after your pets.
Is a Trust Right For Me?
Trusts are fantastic at helping to simplify estate planning. While there are many different types of trust, they aim to help you declare what happens to your money and assets.
For example, you could choose to set up a minor trust to save money for your children or grandchildren. They could access this trust when they reach the age of 18, 21, 25 or an age you are comfortable with – to help them buy a car or get on the property ladder, for example!
Life interest trusts, too, are very popular. Sometimes known as ‘living wills’, lifetime services allow you to pass money or assets (such as a house) to someone while you are alive.
Trusts are very popular because they help to ‘lock in’ your wishes. Once set up, they are clear and easy to understand, leaving no room for doubt or arguments.
Aren’t Trusts Complicated?
While trusts can and will simplify your wishes, actually setting up a trust can be a complex procedure. That’s why it is always a good idea to approach a professional planner who can set everything up for you.
Trusts are a little different from wills in the sense that there are trustees involved. What’s more, some people prefer trusts as they can take legal precedence. That means the law of the trust can overwrite the law of the will!
However, wills are often preferred by people looking for simple arrangements. In fact, wills can be more flexible than you imagine – and in many cases, they can be less stressful, and even cheaper, to set up!
Setting up a trust isn’t something you should do alone. A trust that’s set up improperly could make matters worse for your family or any beneficiaries. Therefore, always, always make sure to approach a professional trust planner.
Do I Need a Will or a Trust?
As a professional will writer, I highly recommend you consider setting up a will as a priority. This is a document that will lay the groundwork for where you’d like your money and assets to go after you’ve gone.
Of course, you can choose to set up a trust at a later date! A trust is ideal if you have a specific need or goal in mind.
That said, I will always be happy to show you some of the brilliant protections you can unlock through will writing alone. Why not call me on 01924 370385 for a quick chat to discuss your options?