Robert Cartmell explores the concept of the types of ‘Trust’ used.
The use of trusts created during your lifetime or by Will by estate planning expert Robert Cartmell.
I, Robert Cartmell, having worked in ‘estate planning’ areas of work for over 25 years and a common question that I am often asked is ‘what exactly is a trust?’.
What is a ‘Trust’?
I like to think of a trust as involving two visual concepts:
(a) a protection ‘box’
and/or
(b) An avatar or version of the creator which can survive the creator and live for up to 125 years. That avatar has instructions from the creator as to how to deal with assets of the creator. People are appointed (Trustees) to oversee that process
View a video explanation of ‘The Types of Trust‘
Trusts – Why are they used?
Primarily, for the protection of assets and the gifting of them efficiently to family members on death or during lifetime.
Protection can include:
- Protecting beneficiaries against 3rd parties (divorce, care fees, insolvency attack)
- IHT protection or mitigation;
- Protecting vulnerable beneficiaries from their own actions;
- To help the administration of complex arrangements (such as gifting of valuable assets, physical assets or the gifting of estate between a number of charities); and
- To crystalise gifting and succession arrangements
When are Trusts created?
Trusts are usually created:
- On death (via a Will) ; or
- During your lifetime
Trusts can also be created by an order of the Court whereby a certain arrangements, agreements or understandings between parties is formalised or crystalised.
What are the types of Trust?
The main types commonly used are;
- Discretionary Trust
- Interest in possession Trust (life interests)
- Bare Trust
- Disabled Person’s Trust
- Charitable trusts
How do we help?
Start with a Will-review process.
That provides information to advise on options for when a trust might be appropriate now or in the future.
(a) IHT planning (lifetime gift making – into trust)
(b) Will-Trusts for succession planning.
(c) Specifically vulnerable members of the family to protect – who might that be?
Plan – not panic.
Please visit our estate planning section for more information and do contact us for an initial meeting or discussion.