- They may worry about their children having the assets included in a divorce settlement
- They may have a child who has a drug problem or gambling problem
- They may just want future generations to benefit from the asset
- They may be worried about bankruptcy and/or Care Home Fees
- They may wish to benefit a new spouse but ensure that ultimately their own children benefit
The list goes on but placing an asset in a Discretionary Trust after your death can help prevent it’s careless or accidental loss so they are a very useful tool to use in people’s wills. If you want to write a will with such a trust in, please email me your basic details and request a telephone will, prices for these are on my pricing page.
In practical terms for the surviving beneficiaries mentioned in such a trust this means that, during their lifetime, they can use the asset as if it was their own but they cannot lose it, the Trustees will control the assets in the trust in such a way to benefit the beneficiaries of the trust but also to protect the asset for future generations.
Thus the asset is protected from being taken by creditors, failed marriages etc.
There is a particular type of Trust called a Nil Rate Band Discretionary Trust which is often used to ring fence the maximum amount transferable on death before Inheritance Tax is triggered, again, please get in touch for more information or to discuss your needs with us.