Everyone wants to protect their assets. This is particularly true when you die; you want your loved ones to benefit from your estate. Of course, everyone normally advises you to create a will so that you do not die intestate. But have you ever considered creating a trust for your assets?
Creating a trust is becoming more popular and there are many good reasons to consider doing this yourself. Let’s take a look at what a trust is and why you should consider creating a trust in the future.
First of all, it is important to understand what a trust is. This is a legal arrangement that you can make involving the control of assets. There are certain individuals that can benefit from the arrangement of a trust and the person who creates it is able to choose how this happens.
There are many reasons why you may consider creating a trust. Let’s take a look at some of the most common advantages of creating a trust so that you can decide whether this is the best option for you.
You may have very specific wishes for your assets when you pass away. A will make not be able to create the arrangement that you would like. However, a trust can be created to be specific and you are able to detail exactly how you would like your assets distributed upon your death. You can know that these arrangements will happen and everyone can benefit how you would like them to.
Not every family agrees when someone dies. In fact, arguing and fighting over assets as more common than you would think. Of course, nobody wants this to happen when they die and for any family feuds to begin. If you believe that having a will may lead to problems, you can consider creating a trust. It can be more difficult to contest and challenge a trust and this can give you peace of mind.
A lot of people create a trust to fund higher education for their children or grandchildren. This can be for private education or college and university. This means there is always money available for tuition and any expenses. It is a good way to protect money and to know that it will only be used for educational purposes and to carry out your wishes if you are not around.
It is always best to be prepared as nobody knows what the future holds. You can set up a living trust that will protect your assets in the event you become ill or disabled. If you ever reach a stage in your life where you cannot make decisions for yourself, a living trust will be controlled by a trustee that you decide.
If you decide that you would like to create a trust, this will require a solicitor. They will be able to draw up your trust and follow your wishes. You can find a solicitor in England and Wales using our legal directory of lawyers. As the legal on trusts can be complex, professional help is necessary. But there are a few steps that you will need to think about.
The first step will be deciding on the assets that you want to use for your trust. This will include valuing those items. This will allow you to decide what you want to do with them and how they can be distributed in the trust. Assets can be anything from property to money.
A trustee is someone that you choose to take charge of the trust on your behalf. This should be someone that you know and you can trust them to carry out your wishes. You can choose more than one person as a trustee.
Of course, there have to be people or a company that benefits from your trust. This means that you have to clearly outline the individuals that you want to receive the benefits. You can also choose the percentage of the benefits that they are entitled to.
The legal document is called a trust deed. This is going to outline all of the terms of the trust. Your solicitor will do this for you and you should go over it together to ensure that everything is how you want it to be. There should be clear terms that include the identity of the beneficiaries to the trust, as well as the trustees. In addition, there should be details of the assets and the objective of the trust.