Use of Trusts in Estate planning.

You worked all your life to build up your estate, make sure as much of it as possible goes to your family.

Nationwidewills works with solicitors to offer trusts to clients to help them achieve financial and tax-related goals.

1. Asset Protection: Property trusts can help protect family assets from various risks and ensure they are preserved for future generations. For example, setting up a discretionary trust or a family trust can allow you to transfer property ownership to the trust while retaining some control over the assets. This can help safeguard the property from creditors, lawsuits, or other financial liabilities.

2. Inheritance Tax (IHT) Planning: Inheritance Tax is a significant concern for many individuals in the UK. Property trusts can be used to minimize the IHT liability on your estate. One common strategy is to establish a discretionary trust, where you can gift assets (including property) into the trust, reducing their value in your estate for IHT purposes. Generally, after seven years, these assets typically fall out of your estate for IHT calculations. 

3. Passing on Property to Heirs: Property trusts can facilitate the smooth transfer of property to heirs while minimizing the impact of taxes and potential disputes. For example, a life interest trust can allow a surviving spouse or beneficiary to reside in the property for their lifetime, with the property eventually passing to other beneficiaries (such as children) upon the survivor's death.

It's important to note that property trusts can be complex legal and financial instruments, and their effectiveness in estate planning depends on individual circumstances and goals. Consulting with a qualified solicitor and Estate planner is crucial. Contact Nationwidewills and see how a Trust could help you and your loved ones.