Trusts
Trusts can be very valuable. At Paradigm Wills, our legal advisors can set up different types of trust, all of which achieve slightly different objectives. You specify the terms and conditions, and we help you choose the right trust based on your circumstances.
Protective Property Trust
Are you a joint homeowner? Do you have concerns about who will inherit your share of the residence? Find out more about protecting yourself, your partner, and your estate.
Disabled Persons and Vulnerable Persons Trust
Do you have disabled children?
Find out more about how to provide your children with financial stability throughout their lifetime.
Flexible Life Interest Trust
Do you want to ensure that your surviving spouse will have an income for the rest of their life? Find out more about how to provide for your partner with income from the trust and avoid inheritance tax.
Asset Protection Trusts
Do you want to ensure that all your assets will ultimately pass to your children? Find out more about creating a living trust that allows you to transfer your assets or property immediately.
Discretionary Trust
Are you concerned about the potential misuse of your assets? Find out more here about creating a trust which gives you control over when and how much your beneficiaries inherit.
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One of the most appealing aspects of having a trust is control.
You control when and to whom distributions are made. If you are dealing with children, disabled people, or those who are unable to take care of themselves, you should consider setting up a trust. It allows you to safeguard property for your loved ones, reduce their inheritance tax, and protect their means-tested benefits.
Setting up a trust can feel overwhelming – you may be concerned about costs or not understanding the process thoroughly. That’s why our friendly estate planners are here to resolve any queries you may have—no matter how small. We offer professional advice with a free consultation to help you decide which trust is best for you.
If you want to browse our Trusts pages, please refer to the list of definitions our experts have compiled to help make everything a little clearer.
Definitions:
A settlor – The person that sets up the trust.
A trustee(s) – The person(s) who manage(s) the assets as per the trust deed.
A beneficiary – The person that benefits from the assets, income generated by the asset, or at the end when the benefits pass from the trust to the will.
Right of survivorship – A right granted to joint homeowners of a property that ensures the surviving partner automatically inherits the deceased’s share.
Tenants in common – When both partners own undivided interest in a property which becomes part of an estate when one dies.
A grant of probate – A legal document left by a person who has a will to confirm that the named executors are authorised to administer the estate of the deceased legally.
An intestate person – A person who dies ‘intestate’ doesn’t leave a will.
The rules of intestacy – When a person dies without leaving a will, their will is distributed according to ‘the rules of intestacy’. This would follow a specific bloodline hierarchy of family members, children, or partners if they were married.
A life tenant – A person granted ‘life tenancy’ is entitled to rent or to remain in a property for as long as they live.
To ring-fence – To ensure that money or assets are protected and used only for their intended purpose.
Deliberate deprivation – When setting up a trust, it is important to be cautious of deliberate deprivation. This is when you sell or give your home away to avoid paying for care fees, and it can be reversed under the NHS and Community Care Act 1990.
Frequently Asked Questions
Setting up a trust can provide significant benefits for managing and protecting your assets, ensuring they are distributed according to your wishes. Below, we answer some of the most common questions about trusts and the services offered by Paradigm Wills & Legal Services.
What are the main benefits of setting up a trust?
Trusts offer several advantages:
- Control: You retain the ability to decide how and when assets are distributed to beneficiaries.
- Protection: Trusts safeguard assets for individuals who may be minors, lack financial experience or face external risks like divorce or creditors.
- Tax Efficiency: Certain types of trusts can reduce inheritance tax and other financial liabilities.
- Privacy: Trusts avoid the probate process, keeping your estate details confidential.
- Flexibility: Many trusts allow for ongoing adjustments, ensuring they meet changing family needs.
By setting up a trust through Paradigm Wills and Legal Services, you can secure your assets for future generations while maintaining peace of mind.
Who can be a trustee in a trust set up through Paradigm Wills?
A trustee is responsible for managing the trust on behalf of the beneficiaries. Trustees can be:
- Trusted family members or friends who understand the needs of the beneficiaries.
- Professional trustees, such as solicitors or financial advisors, who bring expertise to the role.
It’s crucial to select individuals who are reliable, impartial and capable of managing financial matters responsibly. Paradigm Wills can guide you in appointing the right trustees for your trust.
Are there ongoing costs for managing a trust?
Yes, managing a trust typically involves ongoing costs, which may include:
- Administrative fees for maintaining records and reporting to HMRC.
- Trustee fees, especially if professional trustees are appointed.
- Legal and accounting expenses, depending on the complexity of the trust.
At Paradigm Wills, we provide transparent advice about these costs during the trust setup process.
Can a trust help me reduce inheritance tax?
Yes, certain types of trusts are effective tools for inheritance tax planning. By placing assets into a trust, you can reduce the taxable value of your estate. For example:
- Trusts can remove assets from your estate, helping to reduce or eliminate inheritance tax liability.
- Family trusts can allocate wealth over time, ensuring tax efficiency.
Our team at Paradigm Wills can help you identify the right trust to meet your goals and ensure compliance with tax laws.
Will my trust remain private after my passing?
Can I add or remove beneficiaries from my trust later?
The ability to modify a trust depends on the type of trust you establish:
- Revocable Trusts: These allow you to make changes, including adding or removing beneficiaries.
- Irrevocable Trusts: Once established, these trusts generally cannot be altered.
Paradigm Wills can help you choose a trust that offers the flexibility you need to adapt to future circumstances.
Do you offer trust services for business owners?
Yes, Paradigm Wills offers trust services tailored for business owners. Trusts can be used to:
- Protect business assets from personal liabilities.
- Plan for business succession and ensure continuity.
- Minimise inheritance tax related to business assets.
Whether you own a family business or a large enterprise, we can create a trust that secures your interests and aligns with your long-term goals.
What assets can I place in a trust?
Trusts can hold a wide range of assets, including:
- Property: Residential or commercial real estate.
- Financial Assets: Savings, stocks, bonds and other investments.
- Personal Belongings: Jewellery, artwork and other valuable items.
- Business Interests: Shares or stakes in a company.
At Paradigm Wills, we assess your estate and advise on the best way to transfer assets into a trust to meet your objectives.
Will my trust be valid if I move to a different area or country?
Trusts created in the UK remain valid if you relocate within the country. If you move abroad, the local laws of your new jurisdiction may affect the administration and operation of the trust. It’s important to consult legal experts to review and, if necessary, update your trust to ensure its continued validity. Paradigm Wills can provide guidance on maintaining your trust in these situations.