Trust Planning

Trust planning is an important but sometimes overlooked part of organising peoples’ financial affairs.  In general terms, a trust is designed to provide a legal instrument to control the way your assets are passed to others.

Aside from potentially reducing an Inheritance Tax liability, Trusts have a number of additional benefits.  

 

For example, they clearly define who can receive which assets and when.  They offer flexibility and control and they allow for the timely distribution of the assets.

Trusts can be complex and expert advice is essential.

 

How we can help

Although there are many different types of Trust, they all have broadly the same purpose – to detail your wishes for an asset. 

The person who creates the trust is a Settlor.  They must be an adult of sound mind.  The Settlor chooses who can benefit from the Trust, known as the Beneficiaries, and states how and when they can benefit from the gifted assets or death benefits.  For a Trust to be effective for Inheritance Tax planning, the Settlor (and sometimes their spouse), should not be a Beneficiary.   

Trustees are the people chosen by the Settlor to administer the Trust and are the legal owners of the assets in the Trust. Trustees must be adults of sound mind and must agree to administer the Trust for the benefit of the Beneficiaries.   Usually it is best to appoint at least two Trustees, although in certain circumstances three or four may be preferable.

McCrea Financial Services are experts in Trust planning and can advise on the most appropriate way to make gifts for Inheritance Tax planning and more importantly control any gifted asset in a way which meets with your overall aims and objectives.