There are several different types of trust and many potential benefits when considering putting your money into a trust.
Putting your assets in trust lets, you maintain control over them; for example, an individual marries for a second time but has children from a previous relationship. They will want to ensure that their new partner is taken care of whilst ensuring that when their spouse passes away, the money will pass on to their children from the first marriage.
Putting assets into a trust can protect them for your intended beneficiary. For example, if they go through a divorce or find themselves bankrupt, a gift made into a trust where your loved one has no right to the income or capital is far less likely to be considered in both circumstances.
Avoiding Probate Delays
Your executors must pay probate fees and Inheritance tax before your estate can be distributed following your Will. Your loved ones will usually have to find the money from elsewhere. As trusts are held separately from your estate, trustees can access any funds saved there instantly to pay these fees and avoid delays in probate.
Mitigate Inheritance Tax
By placing assets into a trust from which you do not benefit, the assets will fall outside of your estate for Inheritance Tax purposes after seven years. In addition, any potential growth on these assets will also not be classified as part of your estate.