Lifetime Trusts are trusts created whilst you are still alive. Assets are placed into the trust, which is then managed by the trustees for the benefit of your named beneficiaries. There are many assets that can be placed into a lifetime trust, such as money, investments, business assets, property, and even personal possession of significant value.
Lifetime Trusts can be complex and independent advice should be sought on the tax and legal implications.
There are many reasons why you may consider setting up a Lifetime Trust, and there can be many appealing benefits; however, it is paramount that appropriate advice is sought and considered to weigh up these benefits with the other implications and complexities (such as tax, legal, running and managing of the trust, etc.).
Protection of Assets:
Lifetime trusts can protect your assets from third party threats, such as creditors and any divorce of the trust’s beneficiaries. The trust can act like a protective fence around the assets if managed correctly.
Control of Assets:
Once the assets are in the trust, you can still have a degree of control over the assets, including how and when your beneficiaries benefit.
Generational Wealth Planning:
Commonly, lifetime trusts are used as a tool for generational wealth planning to protect family wealth throughout generations.
No need for Probate:
Probate can be a lengthy and costly process, but assets held in a lifetime trust do not need to go through probate on death. Beneficiaries can therefore access the assets more quickly, without the administrative hindrances of probate.
How Kinherit can help
Whilst lifetime trusts are not something we can assist with internally, we do work closely with firms who can provide this service alongside together with the required advice. Contact us today for an introduction.
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