Domestic Reasons for a Trust

trust

Trusts have been created in this country for almost 1,000 years for the same family reasons then as now; here are a few:

Problem:
Parents, grandparents and others have always been concerned that children and grandchildren are at risk if they receive or inherit too much too soon.

Solution:
Create a trust to hold the assets until the children are older and wiser.

Problem:
You may fear that, by giving in your Will all your wealth to your spouse absolutely, it will be frittered away so that little or nothing will remain for your children to enjoy.

Solution:
A Will Trust for your surviving spouse can ensure that the capital is protected but without loss of benefit during widow(er)hood.

Problem:
You might currently have an aged dependant – a widowed mother perhaps or retired housekeeper who would need continuing care should you die before her.

Solution:
A trust can be created to hold sufficient capital to continue the help. On her death the funds can be returned to you or pass to your family.

Problem:
Your son or daughter might risk bankruptcy or an unstable marriage or other relationship, be handicapped and in need of special care or for some other reason be incapable of managing his or her own financial affairs.

Solution:
In any of these situations cash, shares, property, or other forms of wealth can be placed into suitable family trust carefully worded to take account of perceived risks surrounding the intended beneficiary.

Problem:
You might be fearful of losing mental capacity or that your possessions will be taken over by Government Agencies or even fortune hunters.

Solution:
You could place your assets (say your house) in trust for yourself for life so that only the trustees you have chosen can deal with them according to your wishes rather than the Court of Protection or Social Services.

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