Will Based Trusts
All Will based Trusts are
£ 199 for the first one
£ 99 for each one thereafter
Protective Property Life Interest Trust for joint owners
Includes:
The Severance of tenancy on your property which changes the legal ownership on the Land Registry of your property from Joint Tenants to Tenants in Common, meaning you own it 50/50 or in the shares outlined in your deed of Trust if otherwise.
This specific Trust is placed within your Will to ensure that following your death your half of the property is placed securely in Trust for your beneficiaries but your surviving partner is given a life interest in the Trust meaning they can live in the property without fear of being evicted by your beneficiaries when you die.
Should your surviving partner then remarry, go bankrupt or go into care, it is only their half of the property that would be at risk of being lost, your half would be secure for your chosen beneficiaries.
When your partner dies (or remarries if you have stated such) your half of the property will legally belong to your beneficiaries
Protective Property Life Interest Trust for sole owners
Includes:
This specific Trust is placed within your Will to ensure that following your death your property is placed securely in trust for your beneficiaries, but your surviving partner is given a life interest in the Trust meaning they can live in the property without fear of being evicted by your beneficiaries when you die.
Should your surviving partner then remarry, go bankrupt or go into care, there is no risk that the property can be lost as it will be securely held in Trust for your chosen beneficiaries who will inherit when the Trust comes to an end which will be determined by that which you elect in your Trust wishes, options of which include:
When your partner dies
If they remarry
If they move a partner into the property
If they vacate the property for 6 months or longer and that not be for medical reasons
If they go into full-time residential care
Nil Rate Band Trust and Residential Nil Rate Band Trust
The Nil Rate Band Trust is placed within your Will to ensure that your monetary assets (up to the nil rate band inheritance tax value on the day you pass away) are protected for your partner/beneficiaries to use after your death but won’t be in their own estate and therefore won’t be able to be lost as below:
For those with partners:
It protects the assets in the Trust from being lost to a future spouse if the surviving partner remarries and then subsequently dies or divorces
It stops the assets in the Trust being lost if the surviving spouse goes into care
The Trust prevents the assets within it from being lost if the surviving partner/spouse goes bankrupt
For those without partners or where you are the second of a couple to die it protects the inheritance of the beneficiaries as follows:
If any of your beneficiaries are under the age of 18 at the time of your death and they are not your own children (your own children would be able to have an under 18s Trust outlined below) so beneficiaries such as grandchildren, nieces/nephews etc, it allows for their inheritance to be managed properly by your appointed Trustees
The Trust allows assets within it designated for young adults or vulnerable people to be held back until a certain age or distributed to them gradually to stop the assets being squandered or the beneficiary being a target for a financial predator
If any beneficiaries are on benefits at the time of your death their benefits will not be affected as the assets will be in the Trust and not in their own estate and will be distributed to them in a specific protected way
If any beneficiary is married or gets married after inheriting and then gets divorced, their inheritance cannot be lost in a divorce case
No beneficiary can lose the value of their inheritance if they ever go bankrupt
Any beneficiary needing to go into care cannot have their inheritance used to fund that care
Because the amount you leave to a beneficiary will not add to their own estates it means that it will not create an increased inheritance tax issue for their own beneficiaries (called generational inheritance tax)
The Nil Rate band Trust can protect up to £325,000 in total.
Where a property is involved and the beneficiaries of the Will are a spouse or lineal descendants (children, grandchildren or great-grandchildren – otherwise called issue, remote issue or remoter issue) a Residential Nil Rate Band Trust will be added to your Will and adds a further £175,000 of protection to the existing £325,000 that is covered by the Nil Rate Band Trust giving you up to £500k of protection in total for your beneficiaries (that’s £1 million of protection then for the beneficiaries of a deceased couple)
Under 18s Trust for parents
This specific Trust is placed within the Will of a parent to ensure that should any of your children be under the age of 18 at the point you die that their inheritance will be looked after by the Trustees you designate and invested according to your wishes and appointed out for the purposes that you stipulate. At the age of 18 the funds in this Trust would either be appointed directly to the beneficiary or (recommended) go directly into a Young Adults’ discretionary Trust.
These trusts are particularly helpful for the guardians you appoint to look after your children as it enables them to approach the Trustees during their tenure as guardians for funds to help support your children without the risk that would otherwise be attached to leaving a large sum directly to them upon your death such as their own death and those funds going directly to their own beneficiaries, a divorce and 50% of the funds being lost to their spouse, a bankruptcy and the funds being taken by the official receiver or the inappropriate use of the funds left to them because there were no trustees to monitor their use.
Young Adult (18-25) Trust for parents
This specific Trust is placed within your Will to ensure that if any of your children are young adults aged between 18 and 25 when you die that they have their inheritance appointed in phases to them by your nominated Trustees at the ages you set out or at any other time upon application by the beneficiary to the Trustees if the request from the beneficiary is for a purpose that you have stipulated in your trust wishes.
This trust prevents any inheritance being squandered or your beneficiaries being vulnerable to financial manipulation by 3rd parties.
To understand how all the Trusts on this page provide protection for beneficiaries see here: https://thywill.es/trust-loan-notes
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