Asset Trust explained
When you put your assets into Trust you are giving them to a third person to take care of. It is the job of the Trustee (the person you hold the Trust with) to take care of your assets until the time they are ready to be distributed as per your trust instructions. A Beneficiary or Beneficiaries are those set to receive the assets. You should consult with a professional before you get an Asset Trust in Cardiff as they will be able to advise you to ensure you have everything in place before it is too late.
Setting instructions for payout
When you get an Asset Trust in Cardiff with The Will Associates you are in control of how and when its contents are distributed. You could, for example, ensure that a child/grandchild is not able to receive their share until they reach 21, or ensure the inheritance is put towards private medical care for a loved one you leave behind. You can even ensure the money is only given in part at set periods, such as a certain amount annually or monthly so it is not wasted. However, these are only examples of what to do with your assets.
Is there more than one type of Trust?
There is more than one kind of Trust; which one you choose will depend on your circumstances and wishes.
· Bare Trust – this type of Trust allows the beneficiary to receive the assets within it right away, or, in the case of a beneficiary under 18, when they reach that age.
· Interest in Possession Trust - this type of trust is ideal for people that have children/grandchildren they want to benefit in the future without leaving their partner/ex-partner without. The money or property within will be split so that the beneficiary can only get access to immediate funds that are not generating an income. There will be tax paid on that amount by the beneficiary; however the investments will go on to your children or grandchildren.
· Discretionary Trust – leave the decision as to how the assets are split with the trustee. This could be someone that is old enough to make the decision for children or a recipient with disabilities. This allows you to give someone you Trust the power to decide how the inheritance is divided.
· Mixed Trust – if you can’t decide on one type of trust you could decide on a mixed Trust instead. This allows you to split the future inheritance and use different parts of it in different ways. You could halve it, for example, and keep half as a Bare Trust and the other as a Discretionary Trust.
If you need an Asset Trust in Cardiff, then The Will Associates can help you and your loved ones. Call us today on 0800 9500 700 to arrange a free, no obligation appointment with one of our highly-trained consultants at a time convenient to you and your loved ones, in the comfort of your own home.