Protecting Your Assets
There are many advantages to setting up a trust fund with Liverpool Legal Services, from preserving your assets to saving on Inheritance Tax. A Trust can be set up during your lifetime or be included in your Will.
The most important aspect of a trust fund is that it allows you to ensure that your money is used in such a way as to protect the future of the ones that you love.
Trusts are a convenient method for saving tax, as they are taxed separately from Inheritance Tax, Income Tax and Capital Gains Tax.
Types of Trust Fund
There are different Trusts, and you are free to decide which one will be better for you. Liverpool Legal Services will discuss your individual circumstances with you and help you to decide which Trust is the most suitable for your needs.
These are used in many different situations and are commonly used to provide income or access to capital for a disabled beneficiary, or to preserve assets for future generations whilst allowing a surviving spouse to benefit from them during their lifetime.
You appoint people that you trust to act as Trustees and protect your interests, you may have two or more and you can, by a Letter of Wishes, stipulate how you would like your Trustees to manage the assets in the Trust. As a beneficiary of a Discretionary Trust, they can only benefit from the trust fund at the absolute discretion of the Trustees, the assets held by the Trust do not form part of their estate and can therefore be excluded from any means tested benefit assessments.
Often used to pass money onto minor beneficiaries and a Trustee is appointed up to the age of 18. Once your chosen beneficiary turns 18, they will gain direct access to the contents of the Trust. Liverpool Legal Services will discuss your options with you.
Life Interest Trusts
Life Interest Trust of Family Home (Including costs of severance) – £400 & VAT plus disbursements
Life Interest Trust of Whole Estate (Including costs of severance) – £500 & VAT plus disbursements
A Life Interest Trust grants the named beneficiary, also known as the Life Tenant, a right to benefit from the assets held during their lifetime. The Life Tenant can include a right to occupy a property or to receive income from the Trust with the potential to receive capital at the discretion of the Trustees.
Following the death of the Life Tenant, the Trust could state for example that the assets still held by the Trust will revert to the children and this can be particularly helpful for clients with families from previous relationships Liverpool Legal Services will talk you through the options that may be best suited to you.
Personal Injury Trusts
If you are due to receive a Personal Injury award and are worried that this will affect your eligibility for any state benefits you have been receiving, you can place the money into a Personal Injury Trust.