Robert Cartmell explains the benefits of the Will-Trust structures.
Everyone knows how important it is to have a Will prepared. A Will is the legal document by which you dispose of your Estate to your chosen beneficiaries on your death. I, Robert Cartmell, have prepared hundreds if not thousands of Wills for families over a 25 year period. I am often asked how many of those are “Will-Trusts” structures compared with “basic” Wills and I would estimate that over 90% of the Wills I have prepared are in the Will-Trust format. So why do I advocate that structure in the majority of cases for my clients?
Helping your Beneficiaries
The Trust structure primarily helps those receiving your Estate, i.e. your Beneficiaries. The structure assists them in making the most of the estate that passes to them and keeping it protected from attack claims or other interested parties against those assets. That might help in cases where a Beneficiary already has a large estate of their own (therefore their own estate would be increased in value by inheriting and thus subject to future Inheritance Tax) or in protecting against claims on divorce, insolvency or erosion from care fees. Often, the Will-Trust we prepare provides your beneficiaries with the option of accepting their inheritance with the ongoing protection of the Trust or instead directing to close the Trust down. This flexibility for beneficiaries is a key benefit of the structure.
Helping you ensure successive inheritances are achieved
Will-Trusts are also the means by which you can pass assets to children with the added protection of ensuring that the value is protected to ultimately pass to your grandchildren (i.e. down the family lines). A ‘basic’ (non-trust) Will structure does not do this.
Helping your Executors administer the Estate efficiently
The Trust structure often provides flexibility for the trust to be administered by the Executors according to the separate wishes of the Will-maker (Testator) and this provides the Executors with a more efficient and effective process free from undue pressure or complexity from beneficiaries or the Court.
Those are some of the reasons but when should you consider this?
Choosing whether to adopt a Will-Trust or a Basic Will
Consider adopting a Will-Trust if any one or more of the following apply to you and your family:
- Inheritance tax planning is something you are considering.
- You wish your Will to ensure that your estate is protected from third-party claims or attack on the assets passed to a beneficiary.
- If your Will is to pass estate to your children, you wish to avoid it ultimately passing outside of the family lines.
- Likewise, if you are passing estate to a child or other beneficiary but are concerned about it being lost to a son-in-law or daughter-in-law upon a marriage break-up.
- If you are giving money to charity, where you wish to prescribe some guidance and directions as to how the charity(ies) should receive and use the funds.
- For couples with children, where you wish for estate to ultimately benefit your grandchildren and want to ensure where possible this is achieved.
If you would like help or advice from Robert Cartmell on the issues raised in this article, please get in touch.
Email Robert Cartmell Consulting at info@robertcartmell.co.uk to make an enquiry or arrange a discussion.