Creating a will trust is a common strategy in UK estate planning. It allows assets to be managed and distributed according to a person’s wishes after death. Trusts can safeguard property, protect vulnerable beneficiaries and provide a tax efficient way to pass on wealth.
However, setting up a will trust is rarely straightforward for a layperson, which is why it is advisable to use the services of experienced solicitors, such as a London law firm like //www.forsters.co.uk/.
In favour of will trusts
One key advantage of a will trust is the control it gives. The testator can specify exactly how and when beneficiaries receive their inheritance, which can protect young or financially inexperienced heirs.
Trusts can also shield assets from certain risks, such as divorce or creditor claims, and help mitigate exposure to inheritance tax in complex estates.
Additionally, they offer continuity of asset management under trustees, often ensuring stability for family businesses or property holdings.
Against will trusts
Despite their utility, trusts also carry drawbacks. For example, they can be administratively burdensome, requiring trustees to manage investments, file annual tax returns and comply with detailed trust law obligations. Professional advice is often essential in running them, which adds cost and complexity.
Taxation of trusts can also be less favourable in some cases – particularly where discretionary powers apply – and beneficiaries may experience delays accessing funds.
Ultimately, while a will trust can provide valuable protection and flexibility, it demands careful drafting and ongoing stewardship to ensure it is of genuine benefit to the intended recipients.
