At Glaisyers, we know that trusts can sound complicated and confusing. In reality, they’re very useful and allow you to manage your assets, investments and savings to ensure other people benefit from them. We’ve lots of experience on supporting and advising people in this situation, and we’re here to help.
It could be that you’d like to set up a trust to set aside money for future generations of your family, or perhaps you want to provide for your immediate family, friends or charities. Whatever it is, our friendly, caring, professional, lawyers will take the time to be available to listen and understand your situation, before giving clear, straightforward advice.
We know that no two people and no two trusts are the same, so we’ll talk to you about what you want to achieve and the solution that works best for you. Trusts can be created either during your life, or in your will. We’ll explain how putting money, investments or property into one can help you to reduce the inheritance tax bill when you die.
In short, we’ll go the extra mile for you, doing everything we can to help and making sure the whole process is as easy and stress-free as possible for you.
Take a look at our trusts and estate planning services
FAQ’s – Trust & Estate Planning
Q. What is a Trust?
A trust is a binding agreement where one group of people (Trustees) hold assets for the benefit another person, or group of people (Beneficiaries). There are numerous different types of trusts and these can have different tax implications. For further guidance, please see our “Guide to Trusts, Tax and Estate Planning”.
Q. Why would I need a Trust?
Trusts are used as an estate planning tool. On death, an estate can be subject to Inheritance Tax, Income Tax and Capital Gains Tax. Efficient estate planning can reduce potential tax charges or allow effective planning for future tax liabilites. Trusts can also be used to make sure your money is used the way you want it to be.
Q. I want to leave money to my grandchildren in my Will but I don’t want them to have it immediately if I die before they are 18. Is there anything I can do about this?
Any legacy for a minor in a Will will automatically be help in a Trust until they reach inheritance age. The minimum age that someone can inherit is 18 but you can set a later age before they can receive money from the trust. Before your grandchildren are old enough to inherit you can allow them to receive income or for part of the trust fund to be paid out to them for their education, maintenance or other benefit.
Q. If I make gifts during my lifetime they can’t be taxed when I die, right?
Gifts that are made within 7 years prior to a person’s death can still attract an IHT liability. These gifts are known as “Potentially Exempt Transfers” (or PETs) and serious consideration should be given before gifting large amounts of money or assets during lifetime, just to try and avoid IHT, as there are more effective estate planning tools.
Certain gifts can be made without becoming PETs. For example, each person has an annual allowance of £3,000 which can be gifted without affecting their IHT allowance. Gifts for marriage and small gifts to a number of individuals can also be given without becoming PETs. For more guidance on this matter, please see our “Guide to Trusts Tax and Estate Planning”.
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