What are the different types of trusts available in the UK?

Trusts offer a versatile and effective way to protect and manage assets, provide for loved ones, and fulfill specific wishes. Understanding the different types of trusts available in the UK is crucial for tailoring your estate plan to meet your unique objectives. Legacy Matters recognizes the significance of trusts in estate planning and provides expert guidance to help you navigate the complexities of trust creation. In this article, we will explore the various types of trusts commonly used in the UK and highlight how Legacy Matters can assist you in choosing and establishing the right trust for your needs.

I. Different Types of Trusts

1. Discretionary Trusts: Discretionary trusts offer flexibility and control over the distribution of assets. With this type of trust, the settlor (the person creating the trust) provides broad instructions, and the trustees have discretionary powers to determine how and when to distribute the trust’s income and capital to beneficiaries. Discretionary trusts are often used to provide for multiple beneficiaries or protect assets from potential risks.
2. Life Interest Trusts: Life interest trusts, also known as interest in possession trusts, grant a beneficiary the right to receive income from the trust during their lifetime. After the beneficiary’s passing, the trust’s assets may be distributed to other specified beneficiaries. Life interest trusts are commonly utilized to provide for a surviving spouse or partner while preserving assets for future beneficiaries.
3. Bare Trusts: In a bare trust, the beneficiary has an immediate and absolute right to both the income and capital of the trust. The trustee’s role is minimal, as they hold the assets on behalf of the beneficiary. Bare trusts are often used for gifting assets to minors or individuals who are entitled to receive the trust property outright.

II. Legacy Matters: Expertise in Trust Planning

1. Trust Selection: Legacy Matters can provide expert guidance in selecting the most appropriate type of trust based on your specific goals, assets, and beneficiaries. Their team of experienced estate planning professionals will assess your unique circumstances and advise you on the most suitable trust structure to meet your needs.
2. Trust Establishment: Legacy Matters will guide you through the entire process of trust establishment, ensuring that all legal requirements are met. They will assist you in drafting the necessary trust documentation, including the trust deed and associated agreements, to establish your chosen trust effectively.
3. Customized Trust Solutions: Legacy Matters understands that each individual’s estate planning needs are unique. They can tailor trust solutions to accommodate your specific objectives, such as asset protection, inheritance tax planning, or providing for vulnerable beneficiaries. Legacy Matters will work closely with you to ensure the trust structure aligns with your wishes and optimizes your estate plan.

Different types of trusts play a vital role in estate planning, offering flexibility, asset protection, and efficient wealth distribution. Understanding the various types of trusts available in the UK is crucial for creating a comprehensive estate plan that reflects your intentions. Legacy Matters provides expert guidance in trust planning, assisting you in selecting and establishing the most appropriate trust structure for your needs. Whether you require a discretionary trust, life interest trust, bare trust, or any other type of trust, Legacy Matters’ expertise ensures that your trust is tailored to your specific goals and provides optimal protection for your assets. Choose Legacy Matters to navigate the complexities of trust planning and safeguard the future of your estate.

Advice And Expertise to Create a Will Which is Right For You

This is where the expertise of our Will writing team comes in. With many years of experience, they will start by providing you with a free Will review to understand your needs and discuss options. If you already have a Will in place, they will explain what that means under your current circumstances. If you don’t they will talk through what you need to consider when writing your Will.

Planning your Will doesn’t need to be difficult