Have you thought about protecting your inheritance being misused by your beneficiaries or it being attacked by other third parties such as divorce. If you wish to protect the inheritance from any attacks then a Discretionary Trust is what you need.
The discretionary trust is a very flexible form of trust.
In these trusts the trustees have discretion as to how, when, and for whose benefit to use some or all of the capital and income of the trust fund. Beneficiaries or a class of beneficiaries are named in the trust deed and it is entirely up to the trustees to decide which of the potential beneficiaries is to benefit.
They are useful where the person setting up the trust (known as the settlor) has identified a group of people he wishes to benefit, for example children, but is not certain which of them will need financial help in the future or what help will be required. Sometimes a settlor has a main beneficiary in mind but feels it is inappropriate to put the money in that person’s control.
As well as being flexible, discretionary trusts also have the advantage that the trust assets remain outside the beneficiaries’ estates for Inheritance Tax purposes and are disregarded in calculating means tested benefits. This will also fall out of the beneficiary’s estate on divorce settlements.